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Making financial decisions under risk and uncertainty has become part of everyday life. Traditional finance explores the objective side of risk, analysing the decisions made by perfectly rational individuals in efficient market conditions. Behavioural finance seeks to connect theory with...
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degree of bias due to selection neglect increases when other decision makers become more informed, or become more rational …
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The complex world of finance is characterised by numerous irrationalities that representatives of behavioral finance seek to explain by cognitive biases (flaws, inclinations or anomalies). Cognitive biases represent imperfect perception of reality and are caused by limited cognitive capacities...
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behavioural biases such as representativeness, self-serving, overconfidence, loss aversion, and hindsight bias. Using data … overconfidence bias are positively related to financial literacy. Furthermore, some biases exhibit a stronger quantitative … relationship with financial literacy than others. For example, hindsight bias displays the strongest link to financial literacy …
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reduced selected cognitive biases by 30 %. In this work I report results of an experiment which investigated the debiasing … effects of training on confirmation bias. The debiasing training took the form of a short video which contained information … about confirmation bias, its impact on judgement, and mitigation strategies. The results show that participants exhibited …
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