Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Beschreibung:
In the past decade, researchers in psychology and neuroscience studying human decision-making have increasingly adopted a framework that combines two systems, namely "model-free" and "model-based" learning. We import this framework into a simple financial setting, study its properties, and use it to account for a range of facts: facts about investor behavior, such as extrapolative demand and experience effects; facts about beliefs, such as overreaction in beliefs and the relationship between beliefs and stock market allocations; and facts about asset prices, such as excess volatility. More broadly, the framework offers a way of thinking about individual behavior that is grounded in recent evidence on the computations that the brain undertakes when estimating the value of a course of action