Authors: D.M. Drаghici, ORCID ID 0000000166891705, PhD Student, Faculty of Economic Sciences, “Lucian Blaga” University of Sibiu, Sibiu, Romania
Abstract: As individuals we are egocentric, consistently intending to enhance our self-interests by satisfying our most demanding needs and accomplishing our targets. After assembling all the missing informati on and estimating the probabilities that will ease our directions without being too excessive, the decision is being made. Individuals are perceived to be rational investors. Although the theory is teaching us that we all choose based on calculated possibilities and desired outcomes, the observed conduct disproves it. The aim of this paper is to discern how humans behave, react and invest, with the help of an aggregate research based on historical economic contexts and models. By evaluating as well the strategic conduct in uncertain situations will definitely lead to the identification of some patterns in the decision-making process. Because in the end, humans are being distinguished by their pragmatic way of deciding.
Key words: bounded rationality, ambiguity aversion, adaptive expectations, behavioural biases
1st Revision: 20/08/18
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