THE BEHAVIORAL STUDY: ADJUSTMENT AND ANCHORING & MENTAL ACCOUNTING IN GENERAL ECONOMIC DECISIONS
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | Managing and Modelling of Financial Risks |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | Mental accounting bias; adjustment and anchoring bias; behavioral finance |
| Description | The purpose of this article is to verify whether there can be identified adjustment and anchoring and mental accounting bias in general economic decisions of Czech population. Consequently, the target is to detect how general economic decisions are done and influenced by studied biases and heuristics. This goal is reached by conducting own research which is based on an electronic and paper questionnaire. The questionnaire asks respondents to provide data regarding their demographic situation; such as age, gender, education, etc. The main part concentrates on questions concerning the decision making in general economic situation; e.g. shopping, insurance, savings etc. This part is divided theoretically into two sections, one tests the real skills and behavior at financial markets and the second asks the respondents to evaluate them. Based on that could be tested also the overconfidence of the investors. However overconfidence is not the main purpose of this study and thus is mentioned only marginally. The methods, used for evaluation of the questionnaire evaluation are descriptive statistics; p-test and F-test to detect the significance of the results. Respondent's knowledge corresponds to subjective assessment of own knowledge. The results show that anchoring and adjustment are significantly present in general economic decisions as well as mental accounting. |
| Related projects: |