Theoretical Evaluation Of Psychological Biases In Behavioral Finance

Decision-making is the focus of financial studies. The neoclassical approach decision-making from a rational perspective, while behavioral finance uses human psychology and biases. In behavioral finance studies, a number of biases are used to explain the financial decision-making behavior. However, the theoretical infrastructure of psychological biases is limited in these studies. This situation causes insufficiencies and errors in the interpretation of the analyzes as in the design phase of the model. For this reason, in this study, anchoring, over confidence, confirmation, availability, regret aversion biases theoretical infrastructure, causes and consequences and effect of financial decisions and risk taking behavior were evaluated in a broad framework