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Behavioral finance

Behavioral finance Definition

Behavioral finance as well as Behavioral economics applies scientific research on human and social cognitive and emotional biases to better understand economic decisions.

The methodology of behavioral economics / behavioral finances includes observations, games where participants engage in simulations of economic behaviour, such as investing, auctions, etc. In recent years, some research was done using fMRI to determine which areas of the brain are active during various steps of economic decision making.




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