Anomalies in Economics

Anomalies in economics are patterns or observations that deviate from traditional theories and expectations. For example, they include situations like investors consistently overreacting or underreacting to news, or markets not always being perfectly efficient. These anomalies reveal that real-world economic behavior can differ from theoretical models, highlighting complexities in human decision-making, psychology, and market dynamics. Studying anomalies helps economists understand that markets and economies are influenced by factors beyond simple calculations, making them more unpredictable and nuanced than classical theories suggest.