Abstract:

When the financial markets are analyzed it can be seen that crises ocur periodically due to different reasons. One of the main reasons is considered as speculative bubbles. Up to now, any significant result has not been obtained from related studies. At this point neuroeconomics is considered as a new discipline with the aim of examining the bubble formation. Neuroeconomics consisting of neurology, psychology and economics aims to analyze investment decisions and investors’ behaviors via brain waves. In this study papers written for analyzing financial bubbles are taken into the consideration by using neuroeconomics. Furthermore crises caused from these bubbles were explored from the viewpoint of neuroeconomics and behavioral finance. According to the results of related studies these crises which can not be explained by traditional financial theories are examined in the light of neuroeconomics and behavioral finance.

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