Inefficient markets : an introduction to behavioural finance
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The Efficient Markets Hypothesis has been the central proposition of finance for nearly thirty years. This book, by one of the foremost US economists, presents an alternative view of financial markets: behavioural finance. Shleifer demonstrates the oversimplification of EMH both in the common assumption of perfect rationality and the failure of arbitrage to adjust prices correctly. By also detailing the empirical failings of EMH, this book makes a significant contribution to the future direction of financial theory.
Contents: Are financial markets efficient? Noise trader risk in financial markets, The closed-end fund puzzle, Professional arbitrage, A model of investor sentiment, Positive feedback investment strategies, Open problems.