Peter Bossaerts is a Professor of Experimental Finance and Decision Neuroscience at the University of Melbourne.
He has pioneered the use of controlled experimentation with human subjects in the study of asset pricing.
He initially focused on the Capital Asset Pricing Model (CAPM), used throughout the financial industry to evaluate risk/return trade-offs and portfolio performance evaluation; later on he developed the methodology to test the core dynamic model used in finance, macro-economics and central banking to understand the link between asset prices, aggregate income, aggregate consumption, and business cycles (the “Lucas” model).
This research was published in the main journals of finance (Journal of Finance, Review of Financial Studies, Review of Finance) and economics (Econometrica, Journal of Political Economy).
Presentation Title: How Neurobiology Can Inform Decision Science: The Case of Trading Skill