As a sociological matter, my impression is that the vogue of the new
behvioral econ (NBE) in finance,
where people could make big bucks with it, has helped to speed the
acceptance of NBE in
other fields.
So, the idea that behavioral finance (the application of behavioral
economics that has grown most explosively lately for reasons obvious
to economists) refutes traditional asset price theory or traditional
portfolio allocation or traditional anything is as silly as saying
that Marxist relative prices directly tied to labor values are refuted
by production prices. No such thing. In the way finance people look
at it, the traditional models of modern finance theory provide naive
benchmarks. Then more "realism" is added. So far, the "anomalies" or
gaps between the limit concept and observed reality are better
explained as coming from three sources: agency issues, informational
asymmetries, and the quirks raised by behavioral finance. But things
won't stop there...
Hegel would not have expected any different.
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