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- The Dynamics of Behavioural Decision Making
The Dynamics of Behavioural Decision Making
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Introduction
Investing has been done for a very long time. People and organizations invest for many different reasons, like making money, getting an asset in the future, saving enough for retirement, etc. There are a lot of different ways to invest, from a simple bank savings account to very complicated derivatives products. The financial markets are where these investments are bought and sold. A lot of research has been done in the 20th century to try to understand and explain how people or institutions (called "economic agents" in the field) choose where to invest their money. At the same time, there have been many attempts to explain how financial markets work and find balance.
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