Testing of behavior bias: Gamblers fallacy, halo effect and familiarity effect on investors

Herwan Darwis, Suwito Suwito and Zainuddin Jhay
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Herwan Darwis: Economic and Business Faculty, Universitas Khairun, Jusuf Abdurrahman Street, 97719, Ternate, Indonesia
Suwito Suwito: Economic and Business Faculty, Universitas Khairun, Jusuf Abdurrahman Street, 97719, Ternate, Indonesia
Zainuddin Jhay: Economic and Business Faculty, Universitas Khairun, Jusuf Abdurrahman Street, 97719, Ternate, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2021, vol. 10, issue 8, 275-283

Abstract: This study aims to (i) test the behavior bias of gamblers fallacy occurs at the time of uptrend and downtrend conditions; (ii) test the behavior bias of halo effect occurs at the time of uptrend and downtrend conditions; and (iii) test the behavior bias of familiarity effect occurs at the time of uptrend and downtrend conditions. The number of samples in the study was as many as 41 people. The test equipment used is One-Sample t-Test and Paired t-Test by using statistical package for social scientists (SPSS) as a static test tool. The results of this study show that: (i) Gamblers' fallacy that occurs when the uptrend condition is greater than when the condition is downtrend; (ii) Halo effect that occurs when the uptrend condition is greater than when the downtrend condition; (iii) Familiarity effect that occurs when the uptrend condition is greater than when the downtrend condition. Key Words:Behavioral Bias, Gamblers Fallacy, Halo Effect, Familiarity Effect

Date: 2021
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