Psychology of Decision Making in Economics, Business and Finance

Psychology of Decision Making in Economics, Business and Finance

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In a fast-moving world, the necessity of making decisions, and preferably good ones, has become even more difficult. One reason is the variety and number of choices perhaps available which often are not presented or understood. Alternatives are often unclear and complex paths to them confusing and misleading. Thus the process of decision making itself requires analysis on an ongoing basis. Decision making is often made based on cultural factors whereas the best alternative might be quite different. The subject touches ethics aspects as well as psychological considerations. This book presents important research on the psychology of decision making related to economics, business and finance.In this article, we present a study that aimed to test the practical relevance of the prospect relativity principle to more realistic financial decision making scenarios. The results we present here suggest that, when people make financial decisions, anbsp;...

Title:Psychology of Decision Making in Economics, Business and Finance
Author: Klaus P. Hofmann
Publisher:Nova Publishers - 2007

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