The present study chalks the developments in behavioural finance through the course of financial history. It provides the earliest evidences of behavioural anomalies reported by researchers in the stock markets. It starts the discussion with traditional finance followed by the analysis of traditional theories in situations where they are deemed insufficient. The paper then throws light on the significance of behavioural finance and its unique position in bridging the gaps between real life situations and traditional theories.
Kapoor et al. (Sun,) studied this question.
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