Behavioral Finance

Key Concepts
Bias - A predisposition towards error.
 * Excessive Optimism - Overestimating the frequency of experiencing favorable outcomes and underestimating the frequency of experiencing unfavorable outcomes.
 * Winner's curse - Winners of auctions tend to overpay.
 * Overconfidence
 * Confirmation Bias
 * Illusion of Control
 * Heuristics
 * Representativeness
 * Availability
 * Anchoring
 * Loss Aversion
 * Aversion to Sure Loss
 * Framing

Prospect Theory - Wiki Link] - [Original Paper]

Key Researchers
Daniel Kahneman Amos Tversky

Suggested Textbooks
Behavioral Corporate Finance, Hersh Shefrin, 2007, ISBN 978-0-07-284865-6 Behavioural Finance, James Montier, 2002, ISBN 978-0-470-84487-8