Financial decisions are among the most important life-shaping decisions that people make. We review facts about financial decisions and what cognitive and neural processes influence them. Because of cognitive constraints and a low average level of financial literacy, many household decisions...

This main objective of this research is to verify if the psychological profile influences the rationality of individuals' financial decision. To this end, a survey was applied to a group of undergraduate students, based on prospect theory and big five personality traits. We found evidence that...

This original book takes psychological research, experimental economics, and recent business scenarios to provide both students and practitioners with the insights to develop a strong risk management strategy. Shefrin draws on his previous research into characterizing organizational culture...

1. The Rational Homo Psychologicus: A Fundamental Assumption Revisited -- 2. The Value of Thoughtfulness? -- 3. The Growth of the Homo Psychologicus – Optimization Theory as a Replacement for Positioning Theory -- 4. 1000 Hamlets in the Evaluation of the Homo Psychologicus -- 5. BHI: A New...

This paper presents some of the first large-scale survey evidence linking optimism to major economic choices. We create a novel measure of optimism using the Survey of Consumer Finance by comparing a person's self-reported life expectancy to that implied by statistical tables. Optimists are more...