ПОВЕДЕНЧЕСКИТЕ ДЕФОРМАЦИИ И ТЯХНОТО ВЛИЯНИЕ ВЪРХУ ДЕЙСТВИЯТА НА ИНВЕСТИТОРИТЕ
BEHAVIORAL BIASES AND THEIR INFLUENCE ON THE ACTIONS OF INVESTORS

Summary/Abstract: This article analyzes the behavioural biases that inhibit market agents to take impartial judgements and drive them to make irrational financial decisions.Biases are distinguished between cognitive errors and emotional inclinations.The focus is entirely placed on humans instead of econs, as cognitive psychology and experimental economics have been constantly delivering evidence against the model of homo economicus for the last couple of decades.Thus, this paper refers to the main implications of both sciences in order to deliver a comprehensive analysis on the factors underlying the occurrence of behavioral biases.Discussed are the main consequences, that may arise due to the influence of behavioral biases on the actions of agents on the financial and stock markets, including individual and institutional investors, financial analysts, CEO-s, CFO-s, employees, port-folio managers and politicians.

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