Decentralized Finance Unmasked

Behavioral Finance and Public Policy Insights on Financial Market Regulation

Decentralized Finance (DeFi) describes a form of finance without central financial intermediaries. This work, published in June 2023 as an ePDF (freely available Open Access version 978-3-7489-4301-3) and in July 2023 as a print version (978-3-7560-0715-8) by Nomos Publishing, Baden-Baden, analyzes the interplay between behavioral finance and public policy in the emerging field of DeFi.

The work

• Explains the underlying mechanisms of DeFi from a social, economic, and legal perspective;
• Examines the potential impact of DeFi on financial systems and the associated risks, including weaknesses in smart contracts and trust mechanisms;
• Provides insights into financial decision-making processes in DeFi;
• Offers suggestions for improving regulatory frameworks.

The study of DeFi systems is inherently interdisciplinary, with the focus of this work being on financial market regulation from the perspective of behavioral finance & public policy. Thus, this work touches on social and economic sciences, legal sciences, and psychological subjects (behavioral economics and public policy).

You may find more information here: Flyer Financial Market Regulation from a Behavioral Finance & Public Policy Perspective

Target Groups: Scholars, practitioners, and policymakers

Keywords: Financial literacy, behavioral economics, imperfect information, heuristics, trust, nudging, decision-making environment, ecological rationality, behavioral finance, behavioral biases, investment decision making, information asymmetry, public policy, sociology of law, DeFi, decentralized finance, market efficiency, prospect theory, investor psychology, investor behavior, social sciences, legal studies, investment decisions, cryptocurrencies, decentralization, herding, bitcoin, risk, perceived risk, regulation, public policy, finance, financial market, financial institution, financial regulation, government policy, corporate governance, financial crisis, regulation of financial institutions

The work is publicly available as an Open Access publication at doi.org/10.5771/9783748943013 or can be purchased as a print version from Nomos Publishing.