In a recent blogpost, Aswath Damodaran talks about his conversion on the road to Chicago (that is, his acceptance of reality as it is versus his belief in reality as stipulated by Eugene Fama of the University of Chicago). Enjoy:
I must confess that I was a skeptic on behavioral finance until a few years ago. At that point, the amount of information that had been accumulated on the “irrational” behavior of investors became so overwhelming that I faced one of two choices. I could ignore reality and live in the clean, rational world of classical economics or I could face up to facts and think about how investment and corporate finance decisions should be made in the messy world that we live in. After struggling with the conflict, I think I am making some progress.