ItemBook Chapter

The role of behavioral finance in shaping economic decision-making: Insights from AI and big data integration

Title
The role of behavioral finance in shaping economic decision-making: Insights from AI and big data integration
Creator
Vashist, Dev Dutt; Sharma, Manjari; Pandey, Pallavi
Description
This chapter examines how behavioral biases and institutional factors influence investment decisions, bridging gaps in behavioral finance literature. It explores cognitive biases like overconfidence, loss aversion, and herd behavior alongside institutional elements such as regulations and market stability. A mixed-methods approach combines survey data from 320 investors and 30 interviews. Findings show a strong link between biases and decisions, with overconfidence and loss aversion as key drivers. Regulatory transparency reduces bias impact, while uncertainty amplifies emotional reactions. The study highlights the need for clear policies, financial education, and future research on AI's role in mitigating biases. 2025, IGI Global Scientific Publishing.
Source
Understanding Human Decision-Making in Economic Models;pp.27-64
Date
01-01-2025
Publisher
IGI Global
Coverage
Vashist D.D., Christ University, India; Sharma M., Christ University, India; Pandey P., Christ University, India
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISBN: 979-836938168-7; 979-836938166-3;
Format
online
Language
English
Type
Book chapter

Citation

Vashist, Dev Dutt; Sharma, Manjari; Pandey, Pallavi, “The role of behavioral finance in shaping economic decision-making: Insights from AI and big data integration,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 20, 2026, https://archives.christuniversity.in/items/show/25033.

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