Psychology influences markets

http://feedproxy.google.com/~r/sciencedaily/~3/IT2gL9HqTYg/130701151608.htm

When it comes to economics versus psychology, score one for psychology. Economists argue that markets usually reflect rational behavior — with the dominant players in a market, such as hedge-fund managers, almost always making well-informed and objective decisions. But psychologists say that markets are not immune from human irrationality. A new analysis supports the latter case, showing that markets are indeed susceptible to psychological phenomena.

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