Archive | Behavioral Economics

Behaviorist: Understanding Investor Behavior

Literally, a behaviorist is someone who embraces the theory of behaviorism. And, as it relates to investing, behaviorists and behaviorism examine investors’ behavior in investing. Thus, when it comes to stock or other investing, people may think they are very rational when they are actually not. Behaviorists are of the opinion that investors usually act […]

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Behavioral Economics: What You Should Know

Behavioral economics is related to behavioral finance and the concept examines the effects that emotional, cognitive and social factors has on both individuals and institutions’ economic decisions, as well as the consequences for returns, market prices and resource allocation. The concept is basically about the bounds of economic agents’ rationality. Behavioral finance or economics also […]

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