The Implications for Market Participants and Regulators

Gianni Brighetti, Caterina Lucarelli and Daniela Vandone

Chapter 10 in Risk Tolerance in Financial Decision Making, 2011, pp 216-228 from Palgrave Macmillan

Abstract: Abstract The overall empirical findings of our study on risk tolerance are two-fold: on the one hand, we revealed relevant incoherencies among alternative measures of risk tolerance, on the investment side of decision processes. On the other hand, we found that unknown psychological drivers affect the choice to assume debts, especially with regard to unsecured debts. The commonly shared trait of these results is that a large number of dysfunctional behaviours take place when financial decisions are considered. It is thus evidently true that correct knowledge of human mental processing is essential to control conscious/responsible investing and lending.

Keywords: Market Participant; Trading Performance; Risk Tolerance; Financial Education; Consumer Credit (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-0-230-30382-9_11

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DOI: 10.1057/9780230303829_11

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