Behavioural Aspects of the Financial Decision-Making

Abstract

Background and Purpose: Behavioural finance is a relatively new, but rapidly evolving field that provides explanations of an economic decision-making by cognitive psychology, conventional economic and financial theory. Behavioural finance searches the influence of psychology on the behaviour of financial practitioners and the subsequent effects on the financial markets. The purpose of the paper is the research on behavioural aspects of financial decision-making as they help explain why and how markets might be inefficient.

Keywords

• behavioural economics
• behavioural finance
• fuzzy transform
• fuzzy sets