“My work investigates the cognitive mechanisms of financial decision-making, using methods from psychology and neuroscience. I then leverage these findings to better understand patterns of trading behavior in the stock market.”
Cary Frydman is associate professor of finance and business economics at the USC Marshall School of Business.
Frydman is an economist who specializes in behavioral finance, neurofinance and experimental economics. He studies investor behavior and choice under risk using a combination of data on brain activity, eye-movements, and trading decisions.
His most recent research examines how biases in financial decision-making arise from limits on human cognition. One of his recent papers, “The Impact of Salience on Investor Behavior: Evidence from a Natural Experiment,” published in the Journal of Finance in 2020, was awarded the TD Ameritrade Best Paper Award in Behavioral Finance. He also received a $400,000 NSF CAREER Award for “Systematic Instability of Risk Preferences in Economic Decision Making” (2018-2023), which provided funding to launch a new research laboratory at USC Marshall with an emphasis on how attention affects the perception of financial risk.
Frydman serves as an associate editor for the Review of Finance and frequently gives seminars on his research across a wide range of academic departments and asset management firms.
He holds a Ph.D. in social science (economics) from Caltech, an MS in social science from Caltech and a BA in mathematical methods in social sciences and economics from Northwestern University.