Preface

The journey to produce this book began in 1998 when The Institute of Psychology and Markets was founded to study the impact of psychology on investor decision making.As the new century approached, the understanding of markets was moving beyond the perception that fi nancial market participants are perfectly rational.The Institute was founded on the belief that new research would explore important dynamic processes previously ignored by traditional fi nance.The Institute was interested in studying ways in which psychology played a role in understanding how fi nancial markets function.The goal was to address issues surrounding the integration of many disciplines into the fi eld of investing including social psychology, group psychology, psychiatry, organizational behavior, accounting, marketing, sociology, anthropology, behavioral economics, fi nance and decision making.This initial meeting, held in Aspen, Colorado in December 1998, was limited to 25 participants and included some of the most important minds in the study of behavioral fi nance.