Kahneman, Slovic and Tversky (1982) edit Judgment Under Uncertainty:
Heuristics and Biascs, thirty-five chapters which describe various judgmental
heuristics and the biases they produce.
In 1985 Werner F. M. De Bondt and Richard Thaler published `Does the
stock market overreact?' in the The Journal of Finance (De Bondt and Thaler
1985), effectively forming the start of what has become known as behavioural
finance. They discovered that people systematically overreacting to unexpected
and dramatic news events results in substantial weak-form ineffuiciencies in the
stock market. This was both surprising and profound. Mental accounting is
the set of cognitive operations used by individuals and households to organize,
evaluate and keep track of nancial activities. Thaler (1985) developed a new
model of consumer behaviour involving mental accounting.