CAUSAL PEER EFFECTS IN FINANCIAL DECISION MAKING

Abstract

EFFECTS IN FINANCIAL DECISION MAKINGemotions and states such as attitudes towards risk, excessive trust, heuristic bias and gender, which finally results in financial decision making on an individual and institutional basis.The implications of fear and corruption in the financial industry can be explained through neurofinance and even give us more choices in the decision process.Social decisions demand an evaluation of costs and benefits for oneself and others.Connected with emotions and caution, the amygdala is involved in decision making and social interactions.The harm caused by the amygdala deteriorates social interaction, while the social neuropeptide oxytocin affects social decisions by changing the function of the amygdala in one aspect.Empirical research, conducted on a sample of randomly selected subjects who were given identical information, shows that on the basis of the neural database gathered from experimental asset market for testing underlying mechanisms which generate peer effect (Cary Frydman, 2015).Experimental evidence of peer effect in individual behavior of trade and neural data were used for testing of experimental mechanisms generating peer effect.Although the mechanisms which create peer effect in laboratory experiments don't suit the quantitative norm they can ensure settings for probing mechanisms using neural database.The methodology of neurofinance replicates the behavior of trade in laboratory conditions which are robustly found in the field.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 1 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.