Needs, Goals and Motives: Motivation can also be described as the driving force within individuals that impels them to action. This driving force is the result of tension, which in turn is because of unfulfilled needs. To reduce tension, every individual strives for fulfilling their needs. This basically, depends on…
Behavioral Finance is an area of study that combines psychological theories with conventional economics and finance to provide explanations for why people make irrational financial decisions. It challenges the traditional assumption that investors are rational actors, fully informed, and acting in their best interest. Instead, Behavioral Finance suggests that cognitive…
Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights…