Chapter 3: Behavioural Biases

The aim of this chapter is to provide a descriptive overview of the most important cognitive effects that influence an individual's behaviour at each level of the decision-making process. Further, this chapter aims to emphasize the relevance of these biases for individuals' investment behaviour in particular.

The chapter is structured as follows.

3.1. Information selection biases
3.2. Information processing biases
3.3. Decision biases
3.4. Decision evaluation biases
3.5. Biases in intertemporal decisions
3.6. Behavioural biases and speculative bubbles
3.7. Cultural differences in the behavioural biases