Most of research in economics and finance are dominated by positivist paradigm, which means that the financial markets and economics landscape are concrete, while the meanings are examined through scientific empirical ways. However, some researchers in finance used different methodological approaches such as Grounded Theory, Case Study, and Ethnographic Study. For instance, Richard Thaler (1999) in his research on behavioural finance considers human psychology in effects in financial markets.

question 1

a. What is the name of research paradigm that can be used to understand the world in subjective experience?

b. Explain two reasons of why that paradigm (in question a) is relevant in the context of behavioural finance

c. Explain the difference between methods and methodology.

d. Explain the difference between constructs and concepts. Give ONE example of each construct and concepts