• editor.aipublications@gmail.com
  • Track Your Paper
  • Contact Us
  • ISSN: 2456-7817

International Journal Of Engineering, Business And Management(IJEBM)

  1. Home
  2. IJEBM
  3. Vol-5,Issue-5, September - October 2021
  4. Bounded Rationality by Temptation in Investment

For Authors

olcc worldcat dimensions-ai microsoft-academic-search
Author Guidelines Peer Review Process Plagiarism Policy Publication Ethics and Publication Malpractice Statement Editorial Board Call for Papers Publication Process Topics of Interest Track Status of Paper

Issues

Current Archive

Downloads

Download Certificate Paper Format Copyright Form

Indexing and Abstracting

aipublications google scholar aipublications academia

Bounded Rationality by Temptation in Investment

Letian Jiao , Luyao Zhang , Haitao Chen


International Journal of Engineering, Business And Management(IJEBM), Vol-5,Issue-5, September - October 2021, Pages 23-31 , 10.22161/ijebm.5.5.5

Download | Downloads : 8 | Total View : 797

Article Info: Received: 20 Sep 2021; Received in revised form: 09 Oct 2021; Accepted: 18 Oct 2021; Available online: 26 Oct 2021

Share

Rationality is a common assumption that can be found everywhere in traditional economic theory. We always assume that investors are rational and the preference of investors is consistent. But we can always see irrational behaviors in capital market. We use changing utility function to describe character of time-inconsistency for some people so as to study their investment preference about return and risk. And we explain why there exists so many irrational behaviors in the financial market. Investors themselves suffer from this kind of behaviors and financial institute which is selling risky asset take this opportunity to exploit investors.

Bounded Rationality, Time-Inconsistency, Sophisticated, Naïve, Pricing Strategy, Exploitation.

[1] Peleg B. &Yaari M. E.(1973).On the Existence of a Consistent Course of Action when Tastes are Changing. The Review of Economic Studies.
[2] Eliaz K. & Spiegler R.(2006).Contracting with Diversely Naive Agents. The Review of Economic Studies.
[3] Manzini P. & Mariotti M.(2009).Consumer Choice and Revealed Bounded Rationality. Economic Theory.
[4] Airaudo M.(2020).Temptation and forward-guidance. Journal of Economic Theory.
[5] Schneider M.(2020).Temptation-biased preferences for risk and time.Economics Letters.
[6] Frederick S., Loewenstein G. & O'Donoghue T.(2002).Time Discounting and Time Preference: A Critical Review. Journal of Economic Literature.
[7] DellaVigna S. &Malmendier U.(2004).Contract Design and Self-Control: Theory and Evidence. The Quarterly Journal of Economics.
[8] O'Donoghue T. & Rabin M.(2015). Present Bias: Lessons Learned and To Be Learned. The American Economic Review.

aipub drij aipub scribd internet archive research bib scilit indiana tynd rootindexing aipub pdfsr aipub cite factor aipub issuu aipub wikicfp aipub google aipub slideshare aipub reddit aipub digg aipub tumblr aipub plurk aipub yudu Active Search Results
© 2021 AI Publications | All Rights Reserved