Behavioral economics and behavioral finance in decision making

Oktaviana, Ulfi Kartika ORCID: https://orcid.org/0000-0002-5222-4423 (2023) Behavioral economics and behavioral finance in decision making. Presented at ICONIES 2024, 31 Agustus 2023, UIN Maliki Malang.

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Abstract

Behavioral economics emphasizes the importance of empirical evidence and facts that contradict traditional economic assumptions. Several empirical studies have shown that individuals are prone to systematic bias in decision-making, as they do not always make decisions that are in their best interest. Behavioral Economics and Behavioral Finance aim to incorporate psychological aspects into the decision-making process, although it focuses on financial decisions and financial markets. This paper aims to describe the concept of economic behavior and its relation to financial behavior in decision-making using a literature survey. Behavioral economics and behavioral finance involve the science of psychology to study economics and finance, explaining that human biases can influence people's financial decision-making. This paper examines some of the behavioral biases that usually occur in investor decision-making, such as heuristics, overconfidence, mental accounting, and loss aversion, etc. and each of them shows their own representation and the way they influence decisionmaking.

Item Type:	Conference (Paper)
Keywords:	behavioral economics; financial behavior; decision making
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150299 Banking, Finance and Investment not elsewhere classified
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Ulfi Kartika Oktaviana
Date Deposited:	12 Jun 2026 14:23

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