Inefficient Markets: An Introduction to Behavioral Finance

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: behavioral 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 books makes a significant contribution to the future direction of financial theory.