"Mathematics and psychology in the FT
But financial mathematics has been underfunded, given its economic importance, and both private and public sectors must commission more research in the field. For instance, we need to know more about the way human psychology affects market models – and about the scenarios in which models break down.
As far as I know, the use of math in any behavioral science is that it allows a formal way to map correlations. This is useful, but can also be misleading, because it leads people to want to shoehorn data into a formal model. There is no way to use it without serious interpretation. I'm suggesting that confirmation bias is a particularly dangerous problem in this area. It might prove at least as useful having a view of how the world and math relate before using it to predict and organize human behavior.
Don the libertarian Democrat