Excessive self-confidence: The initiator of the irrational in behavioral finance

Autor:	Sonja Dogandžić, Nebojša Stošić, Aleksandar Dogandžić
Rok vydání:	2020
Předmět:	050208 finance Self-confidence media_common.quotation_subject Irrational number 0502 economics and business 05 social sciences Economics 050207 economics Behavioral economics Social psychology media_common
Zdroj:	Ekonomski pogledi. 22:97-108
ISSN:	2334-7570 1450-7951
DOI:	10.5937/ekopog2002097d
Popis:	The classical theory of financial markets is based on the decision-making process based on hypotheses about "market efficiency", which implies rational decisionmaking that always brings the expected results that can be predicted and calculated. However, practice shows that there are situations of irrational decision-making in the markets, the results of which are far from predictable and expected. We need to study these situations through Behavioral Finance, which allows us to monitor the results of irrational decision-making behavior, which we call anomalies. Most irrational decisions are based on excessive self-confidence, so it is the subject of necessary continuous research in order to clarify this segment of irrational behavior in the behavior of actors in the financial market and thus use it to achieve optimal effects.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a00e0ec9a400cb81909185844d656d89 https://doi.org/10.5937/ekopog2002097d Zobrazit plný text záznamu