section_path: Financial theory/Behavioral finance
section_name: Behavioral finance
paragraph_text: Behavioral finance
  
  Behavioral finance studies how the psychology of investors or managers affects financial decisions and markets and is relevant when making a decision that can impact either negatively or positively on one of their areas. With more in-depth research into behavioral finance, it is possible to bridge what actually happens in financial markets with analysis based on financial theory. Behavioral finance has grown over the last few decades to become an integral aspect of finance.
  
  Behavioral finance includes such topics as:
  
  A strand of behavioral finance has been dubbed quantitative behavioral finance, which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation.