Academic Journal of Business & Management, 2021, 3(11); doi: 10.25236/AJBM.2021.031119.
Lei Lei
Southampton Business School, University of Southamton, Southampton, UK
This paper introduces behavioral finance and mainstream finance. Behavioral finance is a more extensive and inclusive field, because it combines economy, finance, behavior and cognitive psychology to effectively explain and explain why investors in the market engage in irrational financial decision-making Zion manufacturing process. When mainstream finance considers all information, investors are more likely to participate in the rational decision-making process, this in turn helps to better achieve the goal of wealth maximization, in addition, bias is an "illogical preference or irrational hypothesis that affects the decision-making process". Considering this, we can see that when an investor has behavioral bias, he / she is more likely to ignore the evidence, especially the evidence inconsistent with the assumptions he / she holds in decision-making. Confirmation deviation is one of the main deviations witnessed by investors.
Behaviour finance, Maninstream fiance, Confirmation Bias
Lei Lei. Behavioural Finance Versus Mainstream Finance. Academic Journal of Business & Management (2021) Vol. 3, Issue 11: 99-102. https://doi.org/10.25236/AJBM.2021.031119.
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