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Sweezy's kinky demand curve and prediction of price rigidity under oligopoly has recently been supplemented by a similar prediction (on different grounds) by Drèze. This paper questions assumptions made by both authors and shows that alternative assumptions reverse the prediction.

The author presents new estimates of the probability weighting functions found in rank-dependent theories of choice under risk. These estimates are unusual in two senses. First, they are free of functional form assumptions about both utility and weighting functions, and they are entirely based on binary discrete choices and not on matching or valuation tasks, though they depend on assumptions concerning the nature of probabilistic choice under risk. Second, estimated weighting functions contradict widely held priors of an inverse-s shape with fixed point well in the interior of the (0,1) interval: Instead the author usually finds populations dominated by “optimists” who uniformly overweight best outcomes in risky options. The choice pairs used here mostly do not provoke similarity-based simplifications. In a third experiment, the author shows that the presence of choice pairs that provoke similarity-based computational shortcuts does indeed flatten estimated probability weighting functions.

We examine the effects of pre-play communication in an experimental game with conflicting risk-dominant and payoff-dominant equilibria. We find that most players condition their choices on the messages received, and do so in an intuitive way, announcing an intention to play the payoff-dominant action, and choosing the payoff-dominant action if the opponent expresses the same intention. However, a significant minority of players misrepresent their intentions. In some sessions where these players appear, behavior converges to an equilibrium in which subjects misrepresent their intentions and play the risk-dominant equilibrium.

The purpose of this paper is to study and describe several biases in investment decision-making through the review of research articles in the area of behavioral finance. It also includes some of the analytical and foundational work and how this has progressed over the years to make behavioral finance an established and specific area of study. The study includes behavioral patterns of individual investors, institutional investors and financial advisors.

The research papers are analyzed on the basis of searching the keywords related to behavioral finance on various published journals, conference proceedings, working papers and some other published books. These papers are collected over a period of year’s right from the time when the most introductory paper was published (1979) that contributed this area a basic foundation till the most recent papers (2016). These articles are segregated into biases wise, year-wise, country-wise and author wise. All research tools that have been used by authors related to primary and secondary data have also been included into our table.

A new era of understanding of human emotions, behavior and sentiments has been started which was earlier dominated by the study of financial markets. Moreover, this area is not only attracting the, attention of academicians but also of the various corporates, financial intermediaries and entrepreneurs thus adding to its importance. The study is more inclined toward the study of individual and institutional investors and financial advisors’ investors but the behavior of intermediaries through which some of them invest should be focused upon, narrowing down population into various variables, targeting the expanding economies to reap some unexplained theories. This study has identified 17 different types of biases and also summarized in the form of tables.

The study is based on some of the most recent findings to have a quick overview of the latest work carried out in this area. So far very few extensive review papers have been published to highlight the research work in the area of behavioral finance. This study will be helpful for new researches in this field and to identify the areas where possible work can be done.

Practical implication of the research is that companies, policymakers and issuers of securities can watch out of investors’ interest before issuing securities into the market.

Under the Social Implication, investors can recognize several behavioral biases, take sound investment decisions and can also minimize their risk.

The essence of this paper is the identification of 17 types of biases and the literature related to them. The study is based on both, the literature on investment decisions and the biases in investment decision-making. Such study is less prevalent in the developing country like India. This paper does not only focus on the basic principles of behavioral finance but also explain some emerging concepts and theories of behavioral finance. Thus, the paper generates interest in the readers to find the solutions to minimize the effect of biases in decision-making.

Trust involves making oneself vulnerable to another person with the prospect of receiving some benefit in return. Contemporary theoretical accounts of trust among strangers emphasize its instrumental nature. People are assumed to trust to the extent that they can tolerate the risk and are sufficiently optimistic that their trust will be reciprocated. We describe evidence from laboratory economic games showing that this account empirically fails. Participants often trust even though their risk tolerance and social expectations suggest they should not. We propose, instead, that trust is largely an expressive act. People trust because of dynamics that surround the act itself rather than its potential outcomes. Evidence for the expressive nature of trust comes in two forms. First, studies of the emotions surrounding trust indicate that it is significantly predicted by how people feel about the act itself, not how they feel about its potential outcomes. Second, trust rates rise significantly if people are placed in a relationship with another person, no matter how anonymous, fleeting, or minimal that relationship is – presumably because being placed in a relationship evokes social norms that promote trust. We end our discussion by explaining a curious fact that participants grossly underestimate the trustworthiness of others. We also discuss possible motives for reciprocating trust and questions for future research.

This paper aims to examine the factors leading to and resulting from procrastination under high price uncertainty and provide recommendations for how managers can reduce consumer procrastination, thus decreasing consumer regret, anger and retaliatory behaviors.

Hypothesized relationships were tested through two scenario-based experiments using student samples. Data was analyzed using general linear model, path analysis and Wald chi-square test.

Long time limits, price uncertainty and price consciousness, all increase the likelihood of procrastination. Prestige seeking reduces procrastination, but only when time limits are short. When one delays a purchase and later the price of the item gets increased or one makes a purchase and later the price gets further reduced, procrastination and purchase decision both equally can lead to anger, which then increases the probability of exit, voice or word of mouth (WOM); however, procrastination has a much stronger impact than deciding to purchase on self-responsibility and regret, which in turn increases negative WOM.

This paper provides a greater understanding of antecedents and consequences of procrastination as well as the drivers of retaliatory behavior. Further, the findings highlight differential consequences of consumer regret and anger on consumption behaviors.

This paper provides practical suggestions for reducing consumers’ procrastination through leveraging the effects of purchase time limit and price uncertainty in general, and more specifically, for prestige-seeker and price conscious consumers. The findings provide evidence for a silent path from procrastination to retaliation and highlight the importance of possible remedies or interventions by the companies to mitigate consumer emotions resulting from procrastination.

To the best of the authors’ knowledge, this research is the first to apply temporal motivation theory in the context of consumer behavior under price uncertainty, and examine consequences of consumer procrastination in terms of thoughts, feelings and retaliatory behavior.