Consumer Behavior and Stock Selection

The purpose of this interdisciplinary research is to compare two different fields of study consumer behavior and stock selection. Our analysis reveals similarities in their development. Early consumer models, known as "grand models", and stock market theories, primarily the Random Walk and Efficient Market Hypothesis were found to be theoretically limited, especially given the emergence of cognitive theories and behavioral finance. We apply the basic elements of consumer behavior models to the different stock market actors. The analysis provides insights into the interactions of these actors in one single market model and takeaways for all stock market participants.