Irrational Behaviour in Financial Decision-Making

Abstract

The goal of the research questions is analysing empirically if there is any irrational behaviour in decision-making and if human behaviour is not always rational using not consistent logic in problem solving or decision-making. The researcher will analysis the behaviour of the investor during bearish and bullish market to find behaviour inconsistency, that according to the researcher, could be due to the asymmetric anchor effect, asymmetric herd behaviour, asymmetric disposition effect and asymmetric, loss aversion, recency bias, frame bias. Keywords: herd behaviour, decision making, disposition effect, asymmetric behaviour, anchor bias, disposition effect, level-K strategy, recency bias, loss aversion, prospect theory, disposition effect, recency bias, frame bias,irrational behaviour or inconsistent logic in decision making and problem solving.