Why can meteorologists make accurate forecasts while economists cannot? Why does it make sense to participate in a game when the odds of losing are high? Drawing on a deep understanding of the mechanisms of modern financial markets, the authors of Fundamentals of Financial Economics provide answers to these questions. This new edition has been expanded to include topical issues such as behavior and experimental finance.

Klaus Schredelseker, Jürgen Huber, Michael Kirchler, Felix Holzmeister, Universität Innsbruck