Firms & Managers

The research of Ulrike Malmendier and David Sraer explores how psychological factors such as risk-aversion and overconfidence affect decision making of managers at firms.

Retail Investors & Household Finance

Retail investors and households are often vulnerable to behavioral biases in their decision making. The research of Stefano DellaVigna, Shachar Kariv, Terry Odean, Ricardo Perez-Truglia, Ming Hsu and Greg La Blanc uses both theoretical and empirical methods to study these topics in a variety of settings.

Asset Markets & Macro-Finance

Investor psychology can cause anomalies in the market prices of assets when compared with underlying fundamental value. The work of David Sraer, Anastassia Fedyk, Brad DeLong and Don Moore explores these topics.

Entrepreneurship, Venture Capital & Private Equity

Entrepreneurs and early stage investors are often viewed to have a greater tolerance for risk and confidence in their abilities. The research of Ulrike Malmendier, Don Moore and Paul Gertler explores the role of behavioral factors in entrepreneurial pursuits.

With its focus on entrepreneurship, illustrious list of alumni who have gone on to start their own ventures and access to Silicon Valley, UC Berkeley is uniquely positioned in advancing our understanding of entrepreneurship. Given the inherent risks involved, exploring the behavioral, social and cognitive factors that influence entrepreneurial activities can provide important insights into what makes ventures successful, the biases influencing this and how access to these opportunities can be expanded. Don Moore, Ulrike Malmendier and Paul Gertler play a leading role at UC Berkeley in advancing this growing field.

The following members of the Initiative for Behavioral Economics & Finance are working in these areas:

• Ulrike Malmendier
• David Sraer
• Stefano DellaVigna
• Shachar Kariv
• Terry Odean
• Ricardo Perez-Truglia
• Ming Hsu
• Greg La Blanc
• Anastassia Fedyk
• Brad DeLong
• Don Moore
• Paul Gertler
• Peter Maxted