Behavioral Finance: Exploring Psychological Factors in Economic Decision-Making

Abstract

This scholarly article delves into the realm of behavioral finance, a field that combines insights from psychology and economics to understand and explain deviations from traditional economic theories. The research focuses on the psychological factors influencing economic decision-making, examining how cognitive biases, emotions, and social influences shape individuals' financial choices. Through an extensive review of relevant literature and empirical studies, this article aims to contribute to the growing body of knowledge in behavioral finance and provide insights into the practical implications for investors, policymakers, and financial professionals. By understanding the intricate interplay between psychological factors and economic decisions, stakeholders can make more informed choices, ultimately leading to improved financial outcomes.