International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 2 (March-April 2025) Submit your research before last 3 days of April to publish your research paper in the issue of March-April.
Submit Research Paper Join as a Reviewer

Plagiarism is checked by the leading plagiarism checker TurnItIn

Call for Paper

Volume 7 Issue 2
March-April 2025

Submit your research paper

Indexing Partners
Academia Advanced Sciences Index Bielefeld Academic Search Engine CiteSeer DRJI Google Scholar Independent Search Engine & Directory Network ISI (International Scientific Indexing) Issuu Mendeley Research Networks
RefSeek ResearcherId - Thomson Reuters ResearchGate Scirus Scribd Semantic Scholar UTeM - Universiti Teknikal Malaysia Melaka Wiki for Call for Papers WorldCat Zenodo

Behavioral economics: How emotions influence financial decisions

Author(s) Harsh Sadhu
Country India
Abstract This research paper discusses the intriguing and interdisciplinary subject of Behavioral economics, specifically the significant role played by emotions and cognitive biases in financial decision-making. In contrast with the conventional "Homo Economicus" premise of total rationality, the paper delves into the manner in which emotions such as fear, greed, happiness, and sadness affect consumption, saving, and investment behaviour. It also delves into a set of cognitive biases, such as loss aversion, confirmation bias, anchoring bias, mental accounting, and herding behaviour, showing how these mental shortcuts systematically distort our financial decisions. By combining case studies, real-life examples, scholarly research, and a close examination of fundamental concepts, the paper demonstrates the real-life implications of such psychological influences and discusses possible means of reducing their negative effects, including nudges, framing, and Behavioral interventions. The essay concludes by highlighting the crucial importance of having knowledge of Behavioral economics for individuals, firms, and policymakers in order to enhance financial well-being and advocate for good economic policy.
Keywords Behavioral economics, emotions, cognitive biases, loss aversion, greed, fear, mental accounting, herding behavior, nudges, financial decision-making.
Field Sociology > Economics
Published In Volume 7, Issue 1, January-February 2025
Published On 2025-02-26
DOI https://doi.org/10.36948/ijfmr.2025.v07i01.37571
Short DOI https://doi.org/g86w9v
View / Download PDF File

Share this



E-ISSN 2582-2160
CrossRef

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads
Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 7 Isu 2Cover Page Vol 7 Isu 1Cover Page Vol 6 Isu 6

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA Open Access

About IJFMR
Fees & Payment
Current Issue
Publication Archive 		Submit Research Paper
Track Submission Status
Publication Guidelines
Publication Ethics
Peer Review & Plagiarism 		Join as a Reviewer
Editors & Reviewers
Reviewer Referral Program
Get Reviewer Membership Certi. 		Website/Journal Policies
Usage Policy
Content Policies
Privacy Policy
Contact Us +91-9687-828-838 editor@ijfmr.com