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Loss aversion and anchoring are both core behavioral biases identified in the conceptual model of retail investor psychology [1] and are frequently studied together as key factors influencing financial decision-making [2], [3], and [4]. Research specifically investigates the combined impact of these biases on investment decisions [5], [6], [7], and financial advisors often address both simultaneously when providing tailored counseling to clients [8].
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Examining Behavioural Aspects of Financial Decision Making - OUCI ouci.dntb.gov.ua 3 facts
referenceThe study by H. Srivastava, S. Moid, and N. J. Rushdi, published in 'Finance: Theory and Practice' (2024, № 4, p. 33-45), investigates the impact of anchoring, herding, and loss aversion on the investment decision-making of 196 working women investors in the Indian Stock Market (Uttar Pradesh, India).
claimIn a study published in Finance: Theory and Practice (2025), researchers H. L. Do, T.M. P. Vu, V. G. Nguyen, N. M. Vu, D. T. Nguyen, and T. V. Tran concluded that anchoring has the most influence on the investment decisions of working women investors, followed by herding, while loss aversion has the least influence.
measurementThe study by H. Srivastava et al. (2024) confirmed that anchoring, herding, and loss aversion bias have a significant positive impact on the investment decision-making of working women investors in the Indian Stock Market.
The Influence of Behavioral Biases on Investment Decisions jmsr-online.com 3 facts
referenceThe conceptual model of retail investor psychology identifies five core behavioral biases: overconfidence, loss aversion, herd behavior, anchoring, and mental accounting.
claimThe conceptual paper 'The Influence of Behavioral Biases on Investment Decisions' examines the influence of overconfidence, loss aversion, herd behavior, mental accounting, and anchoring on the decision-making processes of retail investors.
claimFinancial advisors can improve client communication and portfolio design by using behavioral mapping tools to identify dominant client biases, such as anchoring and loss aversion, and offering tailored counseling.
Psychology Of Financial Decision-Making - Meegle meegle.com 3 facts
claimCognitive biases, defined as systematic errors in thinking, include overconfidence, loss aversion, and anchoring, all of which affect financial decision-making.
claimKey principles of the psychology of financial decision-making include cognitive biases (systematic errors in thinking like overconfidence, loss aversion, and anchoring), emotional influences (the role of fear, greed, and regret), social norms (the impact of societal expectations and peer behavior), and mental accounting (the tendency to categorize money into different accounts based on subjective criteria).
claimCommon biases studied in financial decision-making include overconfidence, loss aversion, anchoring, and herd behavior.
Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org 1 fact
claimMany individuals anchor on the 2007–2008 financial crisis as a negative experience, which can lead them to become excessively risk-averse and loss-averse, resulting in increased worry and the under-weighting of equities in their portfolios.
The Power of Scarcity and Urgency: Behavioral Economics in ... marketingcourse.org 1 fact
claimThe impact of scarcity and urgency in marketing can be amplified when combined with other behavioral concepts such as loss aversion, anchoring, and framing.
5 Behavioral Biases That Can Impact Your Investing Decisions online.mason.wm.edu 1 fact
referenceThe article '5 Behavioral Biases That Can Impact Your Investing Decisions' cites Investopedia for behavioral finance and confirmation bias, Schwab Asset Management for overconfidence and herd mentality biases, Mirae Asset Mutual Fund for loss aversion bias, and SmartAsset for anchoring bias.
Behavioral Economics: Everyday Biases That Shape Money Choices verifiedinvesting.com 1 fact
accountFinancial decisions made by individuals, such as the fictional characters Amelia and Raj, are influenced by universal human biases like anchoring and loss aversion, which are patterns found across generations, cultures, and income brackets.