PREMISES FOR A MODEL OF DECISION – MAKING ON THE FINANCING OF A PROJECT

Tulai Constantin () and Ioana Florina Popovici

Annals of Faculty of Economics, 2010, vol. 1, issue 1, 393-397

Abstract: The classical theory of finance is based on the premises of rationality and maximizing profits that accompany economic decision-making. Complementarily, the modern theory of behavioral finance studies the effect of emotional and psychological factors of decision- maker on the choice of financing sources for economic activities. In opposition with the classical perspective, the contemporary theory of finance brings up to the stage various aspects of decision making, including elements of strategic behavior towards risk. All these contradictory elements are used as premises for modeling the decision making process of financing a project.

Keywords: decision - making; behavioral finance; strategic behavior (search for similar items in EconPapers)
JEL-codes: C70 D03 D8 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2010:i:1:p:393-397

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