Neo-Classical Assumptions and the Behavioral Theorists

• An overview of the evolution of neo-classical theory from the classical school of thought
• An identification of several main assumptions that are made by the neo-classicals
• A discussion of the evolution of behavorial economics including key proponents
• An analysis of several topics that have been examined and the implications for the market
  • The endowment effect
  • The anchoring effect
  • Irrational exuberance
  • Prospect theory
• A discussion of the role of advertising under each general framework