ABSTRACT Objective: this paper analyzes how framing, anchoring, and certainty effects may affect the behavior of consumer auto insurance. Methods: an experiment was carried out, with face-to-face application six versions a questionnaire 14 questions, for 163 respondents from educational institution. Questions were prepared to analyze existence framing effect, anchoring in addition deductible ef...

Traditional finance is constructed on four principles which are portfolio of Markowitz, the arbitrage Miller and Modigliani, capital asset pricing model Sharpe, Lintner Black option-pricing Black, Scholes, Merton, These conclude that market efficient competent. Patrons traditional recommend individual behavior frequently reflect rationality. EMH Samuelson also explains people behave rationally,...

This chapter surveys the literature on the effects of behavioral biases on capital budgeting. A large body of the psychology literature finds that people tend to be overconfident and overly optimistic. Because of self-selection, firm managers tend to be even more affected by these biases than the general population. Indeed, the literature finds that biased managers overinvest their firm’s free ...

Studies of information processing biases in social anxiety suggest abnormal processing of negative and positive social stimuli. To further investigate these biases, behavioral performance and event-related brain potentials (ERPs) were measured, while high- and low-socially anxious individuals performed a modified version of the Erikson flanker task comprised of negative and positive facial expr...