Behavioral finance in Joseph de la Vega's confusion de confusiones

T. Corzo Santamaría, M. Prat, E. Vaquero Lafuente

Journal of Behavioral Finance Vol. 15, nº. 4, pp. 341 - 350

Summary:

In this paper, we link Joseph de la Vega's work Confusion de Confusiones, written in 1688, with current behavioral finance and propose that Vega be considered the first precursor of modern behavioral finance. In addition to describing excessive trading, overreaction and underreaction, and the disposition effect, Vega vividly portrays how investors behaved 300 years ago and includes interesting documentation on investor biases, such as herding, overconfidence, and regret aversion.

Keywords: Behavioral finance; Investor biases; Stock market history; Overconfidence; Herding; Regret aversion

JCR Impact Factor and WoS quartile: 0,333 - Q3 (2014); 1,700 - Q2 (2023)

DOI reference: https://doi.org/10.1080/15427560.2014.968722

Published on paper: October 2014.

Published on-line: December 2014.

Citation:
T. Corzo Santamaría, M. Prat, E. Vaquero Lafuente, Behavioral finance in Joseph de la Vega's confusion de confusiones. Journal of Behavioral Finance. Vol. 15, nº. 4, pp. 341 - 350, October 2014. [Online: December 2014]