Risk aversion (psychology)

Framing effect

Cognitive psychology

Philosophy

Neuroscience

Behavioral economics

Microeconomics

Social psychology

Loss aversion

Expected utility hypothesis

Cognition

Financial literacy

Operating system

Ambiguity

Economics

Market economy

Computer science

Status quo

Hindsight bias

Psychology

Politics

Political science

Epistemology

Conservatism

Financial economics

Pessimism

Programming language

Persuasion

Illusion of control

Finance

Cognitive bias

Perception

Regret

Risk perception

Machine learning

Ambiguity aversion

Overconfidence effect

Status quo bias

Heuristics

The European Proceedings of Social & Behavioural Sciences

The theory of behavioral finance attempts to explain many financial facts, notably risk perception, and in this frame, it has been utilized a large number of biases and heuristics which are taken from psychology. This study investigates whether biases and heuristics concepts that mentioned in finance literature, differentiates according to gender, wealth acquisition manner and risk perception by taking these concepts in the broadest perspective. Results show that while endowment, optimism, self-attribution and hindsight biases are much more observed at active structured people; status quo bias is much more observed at passive structured people. Regret aversion, mental accounting, framing, illusion of control, conservatism and overconfidence are more observed at men rather than women. Individuals who have status quo, loss aversion, regret aversion, availability, confirmation and ambiguity aversion biases display more risk aversion behavior. Also, by considering objective and subjective financial literacy, this study analyses the differentiate levels of especially objective financial literacy according to bias and heuristics risk perception in detail. With regards to these properties, findings of the study represent the first attempt in literature.

Typology Of Behavioral Biases And Heuristics