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Most of the academic literature in Behavioral Finance focuses on so-called financial market anomalies that cannot be explained by the standard rationality assumptions in Economics. An extensive literature has been developed over the last two decades. Barberis and Thaler (2003) provide a somewhat older survey and a more recent account of the literature can be found in Barberis (2018). As the reader of those surveys will readily notice, those surveys exclusively analyze the impact of deviations from rationality on asset markets. Strangely, the academic research that focuses on the industrial organization of the asset management industry is weak or nearly non-existent. This is a pity as the understanding of the value chain of the financial industry is important to understand its Business...
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