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Special Issue Call for Papers: The Heuristic Revolution in Finance

Special issue call for papers from Qualitative Research in Financial Markets

Guest Editors:
Professor William Forbes, Queen Mary, University of London, UK
Dr Aloysius Igboekwu, University of Aberstwyth, UK

A divergence in the path followed by the behavioural project has recently emerged. Early work, especially in finance, was influenced by the “heuristics and biases” program of Kahneman and Tversky, a contribution recognised by the Nobel Prize Committee. However, an inherent weakness in this approach is that it assumes heuristics are a concession to human frailty, using System 1 (autopilot) thinking when System 2 (analytical/calculative) thinking is needed.
Gerd Gigerenzer, within his Adaptive Behaviour and Cognition (ABC) group based in the Max Planck Institute in Berlin have dared to challenge this view, arguing that heuristics may simply be a better way to make decisions in a world characterised by uncertainty (as opposed to risk) and frequent changes in underlying financial market conditions. In such markets “classical rationality’s” suggestion that there is a “best” way to do things may be an unhelpful way of thinking. The ABC have developed a “heuristic toolbox” in which the process of cognition is linked to the context in which it occurs. In this regard, heuristics deploy sparse information to resolve decisions via simple decision-making cues, often of a yes/no nature. In developing such heuristics for use, “less is more” and models representable as simple decision-making trees can be shown to out-perform more common regression models in prediction as well as explanation.

A new “fast and frugal” model of reasoning in finance is emerging in this context and this Special Issue welcomes papers addressing these issues as they relate to any of the following themes:

- Corporate governance
- Asset pricing
- Financial regulation

Articles of 5,000-9,000 words for consideration for publication should be submitted via the journal's online system at: by 31st of December 2017. Before submitting please follow the author guidelines described here.  All articles will go through the double blind peer review process.

For further information, please contact Professor William Forbes at Full information for authors and further details about the journal are available at:

Selected References:
Artinger, F. Petersen, M, Gigerenzer, G. Weibler, J, 2015, “Heuristics as adaptive decision strategies in Management”, Journal of Organisational Behaviour, Vol 36:S1, pp33-52
Aikman et al, “Taking Uncertainty seriously: simplicity versus complexity in financial regulation”, Bank of England Stability Paper, No 28,