The Application of Ecology Theories in Finance

Subject Areas : Journal of Investment Knowledge

Mohammad Salehifar ¹ (PhD. Student in Finance, Management and Economics Faculty, Science and Research Branch of Islamic Azad University, Tehran)
Fraydoon Rahnamay Roodposhti ² (Professor, Management and Economics Faculty, Science and Research Branch of Islamic Azad University, Tehran)
Hassan Chaharmahali ³ (M.A. in Financial Administration, Khatam-ol-Anbia (PBU) University, Tehran)

Received: 2017-07-24 Accepted : 2017-11-12 Published : 2019-03-21

Keywords: finance, ecology, optimal Foraging, Natural selection, animal behavior,

Abstract :

In this paper we examine ecological theories in which could be applied explaining behaviors in financial markets. However animal behavior has been used to describe financial markets so far (Bull and Bear markets and herding behavior), we argue that many theories in ecology has not been studied yet and are overlooked. In this study we show there is a considerable potential to relate ecological principles such as optimal foraging theory, marginal value theorem, prey size threshold, predation and foraging, bet hedging hypothesis, natural selection, weather and animal behavior, and propagule pressure to financial markets theories.    

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