Survey evidence on core factors of behavioral biases

Marc Oliver Rieger, Mei Wang, Po-Kai Huang and Yuan-Lin Hsu

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2022, vol. 100, issue C

Abstract: In the past decades, a multitude of behavioral biases with regard to financial decision-making have been found. We show that nine common judgment and decision biases can be reduced to three main latent factors that are related to belief-updating, self-judgment, and valuation. The three-factor solution can be replicated in both Taiwanese and German samples. We find some tentative evidence that cognitive reflection decreases the propensity for belief-updating biases, whereas affect, especially negative affect, increases self-judgment biases.

Keywords: Investment behavior; Behavioral decision making; Psychological biases; Emotional state measures; Cognitive strategies (search for similar items in EconPapers)
JEL-codes: D81 D83 D91 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:100:y:2022:i:c:s2214804322000866

DOI: 10.1016/j.socec.2022.101912

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