Anchoring Effect Affect the Decision Making on Stock Market

Jialin Guo (), Yuhan Wang and Ruohan Xue
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Jialin Guo: Beijing NO.80 High School
Yuhan Wang: Chengdu Foreign Language School, International Part
Ruohan Xue: Shandong Experimental School

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 1250-1256 from Springer

Abstract: Abstract Although market fluctuations may aid investors in making better trading decisions, psychological variables such as the anchoring effect can also have an impact. The anchoring effect is one of the most effective cognitive heuristics. The impact of the anchoring effect on investor performance and capabilities is studied in behavioural finance, which is important since it discloses the root causes of market insufficiency. Many types of anchors, investors, and the frequency with which these factors arise all affect investment decisions. The fundamental purpose of this study is to see how these characteristics influence stock market decision-making. The stock market and the anchoring effect can be combined. It has the capacity to successfully combine the anchoring effect with the stock market. The researchers discovered that all factors might have a significant impact on decision-making.

Keywords: Anchoring Effect; Stock Market; Decision Making; Cognitive Bias; Individual Difference (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-036-7_185

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DOI: 10.2991/978-94-6463-036-7_185

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