Search

Consumers frequently receive refunds from prior purchases. In this research, we examine if money refunded from previous purchases is more likely to be spent than money that does not go through a refund process. Across nine pre-registered studies, we test how consumers' willingness to spend depends on the transaction history of their money. We find that, when people receive a refund and do not need to replace the originally purchased item, they are more likely to spend the refunded money on a discretionary purchase than they are to spend non-refunded money that is otherwise identical. We suggest that this pattern arises because refunded money is earmarked as "spending money" at the time of the initial purchase and then retains that earmark even after the refund is issued. When refunds arrive, therefore, they seem free from obligations and easy to spend. This research documents the psychology of purchase refunds, a topic largely unaddressed in the mental accounting literature to date. [ABSTRACT FROM AUTHOR]

This article tests the effect of a novel credit card payment format—repayment-by-purchase—on consumers' payments toward credit card debt. In contrast to typical balance repayment, where consumers make repayments relative to a total amount owed, repayment-by-purchase prompts consumers to select items (e.g., a Starbucks coffee) or categories of purchase (e.g., restaurant and café purchases) and to make payments toward their related debt. A field experiment first suggests that customers who opted into repayment-by-purchase paid 12.18% more toward their statement balance than a control group. Subsequently, five lab experiments show that consumers repaying-by-purchase increase repayment by an average of 22.47% over typical balance repayment. Process evidence suggests that these differences may be driven by repayment-by-purchase's power to increase purchase salience, which in turns increases perceptions of progress toward reducing debt. Consistent with this theory, the effect of repayment-by-purchase on bill repayment emerges regardless of whether consumers repay durable versus nondurable goods, and for specific items or categories of purchases, as long as the bill uses labels that are concrete enough to raise past purchase salience. [ABSTRACT FROM AUTHOR]

Debt accumulation has been linked to materialism, impulsivity, shortsightedness, self-control, and lifestyle preferences. However, applying stigma theory allows novel insights into debt accumulation for middle-class individuals who access a variety of credit-related products. The authors define anticipated stigmatization of debt as the negative judgment and discrimination an individual expects to experience because of their consumer indebtedness. Results from a series of studies demonstrate that although financial stress motivates behaviors designed to reduce debt, debtors who anticipate stigmatization perform a variety of concealment behaviors (secrecy, social spending, and help avoidance) that hinder debt reduction and have negative effects on well-being. To understand how to help these individuals, the authors collaborated with a financial education company, designing a field experiment to examine the efficacy of a behavior change course. Individuals who anticipated stigmatization and formed new social connections in a community-based condition reduced their consumer debt. Although the emotional effect of community-based support has been examined in other stigma contexts, this study is the first to investigate the effect on well-being in a debt context and link social benefits to actual behavior change in terms of debt reduction behaviors and debt repayment. [ABSTRACT FROM AUTHOR]

This research challenges the entrenched belief that financial vulnerability affects only low-income consumers. Instead, most consumers across the socioeconomic spectrum experience varying degrees of financial vulnerability at different points during their lives, whether sporadically or chronically; vulnerability is dynamic and heterogeneous. The authors propose a novel, theory-driven definition of consumer financial vulnerability (CFV) as the risk of incurring future harm, given the consumer's current access to various financial resources. A new conceptual framework decouples "vulnerability" from "harm" to distinguish the state of CFV, its determinants (access to various interdependent financial resources), and the constructs it foreshadows (multiple interconnected forms of realized harm). Five research propositions follow: (1) financial resource volatility plays a vital role in CFV, (2) recovering from harm requires more financial resources than preventing harm, (3) a multiperiod lens is needed to assess CFV accurately, (4) greater financial resource access can increase CFV, and (5) generalized financial literacy is not a panacea for mitigating CFV. The propositions and their implications for marketing strategy, public policy, and consumer well-being offer a rich research agenda. The authors propose a measure of CFV—the probability that financial resources are insufficient to meet or exceed a harm threshold—for future empirical investigations. [ABSTRACT FROM AUTHOR]

By using a unique dataset of more than 20,000 individuals with savings accounts from August 2019 to October 2020 in South Africa, this paper examines how the COVID crisis has affected savings behavior, and by affecting savings, impacted wealth inequality. We find that while COVID increased savings on average, the increase in average savings is due to a small group of higher income savers which substantially increased their savings, while a large group stopped saving. [ABSTRACT FROM AUTHOR]

Research on women’s financial decision-making involves a great deal of behavior and financial research. Due to the complexity of the phenomenon and the fact that it encompasses various aspects of life, making a deep-seated decision necessitates consideration of both financial and cognitive factors. A woman, as a wife, plays a vital role in the household, especially in terms of financial decisions. The purpose of the study is to assess a variety of determinant-taking decisions lecturer finance woman, Dpk LLDikti Region VII, Indonesia. It evaluates connection intelligence fluid (FI), which consists of dimensions number intelligence (FI NI), verbal comprehension (FI VU), perception speed (FI PS), inductive reasoning (FI IR), and deductive reasoning (FI DR), as well as literacy finance (FL) with making financial decisions (FDM). It employs a quantitative statistical method to examine the relationship between specified variables. Using smartPLS 4, primary data from a structured questionnaire utilizing a 5-point Likert scale were analyzed using a partial least squares-structural equation modeling approach. FI NI; FI VU; FI PS; FI IR; and FI DR exhibited a positive and statistically significant correlation with FI, as indicated by the results. This also demonstrates that FI and FL have a positive and substantial relationship. The results also demonstrate that FI and FL have a positive and statistically significant relationship with FDM. Successful FDM requires FI (FI VU; FI PS; FI IR; FI DR) and FL to optimally execute a systematic and logical decision-making process.

Whereas the influence of regret on decision making is well-established, it remains unclear whether emotion regulation may modulate both the affective experience of regret and its influence on decisions. To examine this question, participants made decisions about options involving uncertainty using two different, instructed emotion regulation strategies. In one case, they were instructed to treat each choice individually, while in the other they were encouraged to treat a series of decisions as a portfolio. The present experiment demonstrates that approaching a series of decisions as a portfolio led to less extreme affective reactions to outcomes and lowered physiological arousal levels compared to focusing on each decision in isolation. However, the different emotion regulation strategies did not alter the influence of anticipatory regret on choices. The results indicate that these different emotion regulation strategies can be used to alter the experience of regret. These findings support a role for cognitive strategies in mitigating the affective experience of regret and suggest a means to encourage consumer welfare. [ABSTRACT FROM AUTHOR]

This study explores the similarities and differences in herding behaviour and influencers by gender, specifically for the millennial generation. We find evidence that both groups exhibit very similar behaviour when it comes to herding and the influencers they choose to listen to. The two groups differ somewhat in the influence parents and siblings have on them, with females experiencing more influence from them. These findings are significant as they are contrary to most existing literature which suggests that males and females are quite different while making investment decisions. Regression model for the impact of influencers on herding behaviour was also similar for both genders. Both groups listen to experts but do not herd based on this. Both groups tend to herd more based on friends, relatives, siblings and parents. The insights from the study will be useful for services marketing professionals and financial planners who can use the influencers who will be effective in communicating information as well as enrol those influencers who male and female millennials herd with for their financial investment decisions. This should help them achieve more targeted communication strategies. [ABSTRACT FROM AUTHOR]

In recent years, financial literacy has attracted much attention in the field of household finance as individuals have become more concerned about their financial well-being. Besides, financial products have become more complex over the years. Therefore, financial literacy has become crucial for financial decision making and has received the attention of policymakers, researchers and regulatory bodies. This study investigates the cross-sectional heterogeneity on the relationship between financial literacy and stock market participation in an emerging economy, particularly Pakistan. This study uses the survey data of the 300 individuals residing in Islamabad. Exploratory factor analysis is used to assess convergent and discriminant validity of the survey data. Results are estimated using logistic regression. Results of this study show that individuals with higher levels of financial literacy tend to participate more in the stock market. This study also finds the support for gender gap on the financial literacy and participation in the stock market. Further, it is observed that age, qualification and income are positively associated with stock market participation. In the end, the conclusion of the study is given along with significant policy implications. [ABSTRACT FROM AUTHOR]

Abstract The purpose of this research is to combine the genetic algorithm in the optimization of the stock portfolio in the financial decision making of investors; in a simulation project, the final use of the input data is to build the simulation model. This process includes collecting input data, analyzing the input data, and using these analyzed input data in the simulation model. The statistical population of the research includes 20 symbols (companies) from among the industries (Vabsadar, Vetjarat, Akhaber, Fakhuz, Fars, Balbar, Tapampi, Khasapa, Khodro, Sasharq, Sosofi, Shobhorn, Shapna, Ghopino, Fould, Ghasabat, Kesra, Vanbank, Vanneft, Veniki) and the information related to the daily stock price and the daily index value from Decembre 22, 2008 to January 16, 2020 was considered as a sample. The tool for collecting information and data is using the Phipiran site, and the amount of beta (risk) of stocks is calculated monthly using Excel software, and the frequency of return and beta (risk) calculated using Spss software, and distribution functions were discussed using Easy fit software; the results showed that if the agents are beginners to earn more profit than normal behavior and accept 40% risk, the amount of profit obtained after optimizing the model with genetic algorithm is more than the initial model. If the agents are professionals to earn more profit than risk-averse behavior and accept 80% risk, the amount of profit obtained after optimizing the model with genetic algorithm is more than the initial model. Extended Abstract Introduction Today, in order to reduce the investment risk, investors in the financial markets prefer to allocate capital to a portfolil consisting of several shares rather than investing in only one share; because this enables them to bear a lower level of risk in order to achieve a certain amount of return in a certain period of time. An issue that has occupied the minds of many financial analysts and investors for many years is how to choose stocks and optimize the investment portfolio over time in a way that meets the investor's expectations in order to maximize the return on investment. When investors are exposed to uncertainty, the investment portfolio selection framework should include a quantitative measure of uncertainty to achieve the expected return or a quantitative measure of risk (Shahraki Sanavi, 2023). Today, with the increasing growth and changes of financial markets in developed and developing countries, or due to the unpredictable performance of investors, pure mathematical solutions are not enough to solve such problems, and therefore robust algorithms are considered to solve them. (SheidaeiNarmigi et al, 2020). Genetic algorithm can solve the problem of stock portfolio optimization by considering different levels of risk or success. By means of the genetic algorithm, you can create an optimal portfolio within a few minutes, which will cause a change in the capital market and will greatly help the efficiency of the capital market. One of the main signs of a country's progress is its economic progress, and if new methods are not used in the field of financial transactions, it will harm the economy (Pakmaram et al, 2017). Therefore, the researcher is trying to answer the question; how is the genetic algorithm in optimizing the stock portfolio in the financial decision of investors? Theoretical Framework Genetic algorithm The principles of genetic algorithm were first presented by Jan Haland, (1975). The genetic algorithm is an optimization algorithm with general application and is modeled on Darwin's evolutionary theory. Genetic algorithms are meta-heuristic algorithms based on biological evolution that try to obtain high-quality answers at the right time by creating an initial population and improving its quality by applying various operators (Farughi et al, 2020). Genetic algorithms are suitable for multi-objective optimization due to examining a set of possible solutions and also less sensitivity to a specific form of optimal points. Objectives are in the form of mathematical functions and represent appropriate use to improve decisions in optimization (Sheydaei Narmighi et al, 2020). The concept of stock portfolio optimization has become like a tool in the direction of developing and understanding financial markets and financial decision making. Consider the spread of risk and return at the same time and choose the amount of capital allocation between various investment opportunities based on the interaction between the two. Therefore, the investment that seeks to maximize the expected return and minimize the risk has these two opposite goals that must be balanced against each other. One of the interesting results of these two opposing goals is that the investor should diversify by buying several types of securities. On the other hand, due to the complexity of management, the system of rules and regulations and the policies of asset; management companies in the framework of financial markets, investment managers impose restrictions on their optimal asset set, which makes the model nonlinear and complicates the problem. (Faridi et al, 2022). Niko & Bazrafshan (2023) investigated the stock portfolio using a combined genetic algorithm and simulated refrigeration. The results show that the hybrid algorithm searches for the optimal solution in a shorter period of time than the genetic algorithm and performs better than the other two algorithms in terms of risk and return. Shahbazi (2022) investigated stock portfolio optimization with beta coefficient clustering approach. The goal of the challenge is to minimize the portfolio variance. The stock clustering method is to group beta coefficients of stocks into four clusters. The investor has an expected return that the portfolio must meet. Expected returns and clustered shares are inputs to the problem. It is not possible to borrow and sell on credit. A non-linear mixed integer mathematical model is presented to introduce the proposed portfolio and in one case it is checked on 50 most active stock companies. Finally, the Sharp index shows a favorable result. Research methodology In a simulation project, the final use of the input data is to build the simulation model. This process includes collecting input data, analyzing the input data, and using these analyzed input data in the simulation model. The statistical population that was used for the implementation of the mentioned research was accepted in the stock exchange company with 52 industries and approximately 1,543 symbols, which were used for daily trading in the stock market. In this research, 20 brands (companies) are considered including (Vabsadar, Vetjarat, Akhaber, Fakhuz, Fars, Balbar, Tapampi, Khasapa, Khodro, Sasharq, Sosofi, Shobhorn, Shapna, Ghopino, Folad, Qathabat, Kesra, Vabank, Veneft, Vaniki). The tool for collecting information and data is using the site https://www.fipiran.com. Research findings The amount of beta (risk) of stocks was calculated monthly using Excel software, the frequency of return and beta (risk) was calculated using Spss software, and the distribution functions were analyzed using Easy fit software. The results showed that by making more transactions, people turn from beginners to professionals, and people turn from risk-averse to normal and then risk-taking. Examining the system in a longer time horizon provides more realistic results and the simulation model can be examined in more realistic conditions. Conclusion The current research has been carried out with the aim of combining the genetic algorithm in the optimization of the stock portfolio in the financial decision making of investors. The results of this research are consistent with the results of Shahbazi (2022), Kalayci et al, (2020), Li & Tam (2020), Mirabi & Zarei (2020). Pakmaram et al, (2017) showed that the genetic algorithm had a lower objective function value, or in other words, it reached the best result with the least error; it performed better than other algorithms and shows the relative superiority of this algorithm in choosing the optimal stock portfolio. According to the present research, it is suggested that investors (risk averse/risk taking) should also examine other models with regard to the expected return, because according to their risk tolerance or risk aversion, their returns will be different. One of the important points for investors is portfolio management and considering future transaction costs. Investors always want to achieve their desired portfolio with the least number of transactions and consequently the lowest future transaction costs.

The aim is to investigate the value basis of Socially Responsible Retirement Investments (SRRI) in a study of Swedish pension investors in the age range 18 to 65 years (N=1005). Logistic regression analyses were performed with self-reported SRRI choice as dependent variable and different levels of values as independent variables. On a higher level of analyses, self-transcendent values, especially universalism (e.g., equality, protecting the environment, and social justice), have the most important influences on SRRI choice. In contrast, on a lower-level analysis, SRRI choice is influenced by self-enhancement values with high priority for authoritarian power and low priority for wealth. The three-level analysis of values (self-transcendence vs self-enhancement value orientation, motivational domain, and value) questions the contradiction between dimension poles of values and the structuring of values in interrelated motivational domains. The results thereby clarify some previous findings and increase the understanding of the value basis of SRRI. [ABSTRACT FROM AUTHOR]

Research has demonstrated that after making high goal progress, consumers feel liberated to engage in goal-inconsistent behaviors. But what happens after consumers make high progress in the context of joint goal pursuit? The authors examine how jointly made progress toward a joint goal pursued by couples affects subsequent individually made goal-relevant decisions. Across five experiments with both lab-created couples and married participants and financial data from a couples' money management mobile app, the authors show that after making high progress on a joint goal (vs. low or no progress), partners with higher relationship power are more likely to disengage from the joint goal to pursue personal concerns (e.g., indulge themselves, pursue individual goals), whereas partners with lower relationship power do not disengage from the joint goal and continue engaging in goal-consistent actions that maintain its pursuit. The authors elucidate the underlying mechanism, providing evidence that the joint goal progress boosts the relational self-concept of high- (but not low-) relationship-power partners, and this drives the effects. Importantly, they demonstrate the effectiveness of two theory-grounded and easily implementable interventions that promote goal-consistent behaviors among high-relationship-power consumers in the context of joint savings goals. [ABSTRACT FROM AUTHOR]

U.S. households currently hold $770 billion in credit card debt, often managing repayments across multiple accounts. The authors investigate how minimum payment requirements (i.e., the requirement to allocate at least some money to each account with a balance) alter consumers' allocation strategies across multiple accounts. Across four experiments, they find that minimum payment requirements cause consumers to increase dispersion (i.e., spread their repayments more evenly) across accounts. The authors term this change in strategy "the dispersion effect of minimum payments" and provide evidence that it can be costly for consumers. They find that the effect is partially driven by the tendency for consumers to interpret minimum payment requirements as recommendations to pay more than the minimum amount. While the presence of the minimum payment requirement is unlikely to change, the authors propose that marketers and policy makers can influence the effects of minimum payments on dispersion by altering the way that information is displayed to consumers. Specifically, they investigate five distinct information displays and find that choice of display can either exaggerate or minimize dispersion and corresponding costs. They discuss implications for consumers, policy makers, and firms, with a particular focus on ways to improve consumer financial well-being. [ABSTRACT FROM AUTHOR]

Financial decision making requires a sound handling of chance events. However, various studies have suggested that people are prone to illusion of control, i.e., the belief that prospects of a chancy event are better if they are involved in the randomisation process. This paper reports results from an experiment ( N = 420 ) suggesting that psychological characteristics moderate risk-taking behaviour under such circumstances. For example, we find that subjects high in sensation seeking buy more tickets of a risky lottery if they determine the winning numbers themselves and the random event lies in the future. The findings suggest that "illusion of control" effects are at least partly driven by underlying (idiosyncratic) emotions/preferences rather than an actual belief in control. Regarding applications, the results emphasise the importance of individual characteristics for the behaviour of decision makers in a financial context. [ABSTRACT FROM AUTHOR]

This study examines how automatic enrollment and employer contribution provisions relate to the retirement plan participation decisions of Millennials using data from the 2018 U.S. Financial Industry Regulatory Authority's (FINRA) Millennial Investment Study. The analysis controls for various factors such as total debt, household income, risk tolerance, and investable assets. The findings underscore the notion that automatic enrollment and employer contribution provisions are associated with an increased likelihood of participation in retirement plans among Millennials. The empirical results reveal that the absence of auto-enrollment, lack of employer-matching contributions, or communication inadequacies are fundamental reasons for Millennials' non-participation in employer retirement plans. These findings have important implications for employer retirement plan design and the effectiveness of their communication strategies. [ABSTRACT FROM AUTHOR]

The purpose of this study is to determine the intraday hourly trading trends of currencies using predictive modeling techniques. The study encompasses two distinct intraday time intervals of 30 minutes and 1 hour, analyzing currencies from 8 different countries. It incorporates the use of wavelets MODWT to identify trends and noise in intraday currency analysis. Three predictive models, namely Support Vector Regression, Recurrent Neural Network, and Long Short-Term Memory, are applied to relative time series data to predict intraday trading currency trends. The study reveals significant noise presence in three currencies based on MODWT analysis. Additionally, it demonstrates that deep learning techniques, such as LSTM, outperform traditional machine learning approaches in accurately predicting intraday currency trends. This study contributes substantially to the theoretical understanding of international finance and provides practical insights for real-time problem-solving in currency markets. Further, this research adds to the discourse on leveraging sophisticated analytical methods within the domain of business intelligence to enhance decision-making processes in organizations operating within dynamic and complex financial environments. [ABSTRACT FROM AUTHOR]

The current research introduces the concept of psychological ownership of borrowed money, a construct that represents how much consumers feel that borrowed money is their own. The authors observe both individual-level and contextual-level variation in the degree to which consumers feel psychological ownership of borrowed money, and variation on this dimension predicts willingness to borrow money for discretionary purchases. At an individual level, psychological ownership of borrowed money is distinct from other individual factors such as debt aversion, financial literacy, income, intertemporal discounting, materialism, propensity to plan, self-control, spare money, and tightwad–spendthrift tendencies, and it predicts willingness to borrow above and beyond these factors. At a contextual level, the authors document systematic differences in psychological ownership between different debt types. They show that these differences in psychological ownership manifest in consumers' online search behavior and explain consumers' differential interest in borrowing across debt types. Finally, the authors demonstrate that psychological ownership of borrowed money is malleable, such that framing debt using language lower in psychological ownership can reduce consumers' propensity to borrow. [ABSTRACT FROM AUTHOR]

The development of cloud computing technology has promoted a new information technology revolution, and the arrival of the cloud accounting era has brought new ideas to enterprise financial decision-making. This paper first introduces the improved swarm intelligence algorithm grasshopper optimization algorithm optimization, using reverse learning the Levy flight mechanism to improve the global search ability of the original grasshopper algorithm, using the Gaussian variation mechanism to increase the diversity of the population to achieve algorithm optimization. The IGOA algorithm is then used to optimize the internal parameters of KELM by dynamically adjusting the optimal parameters based on the training set data through a 5-fold cross-validation analysis to evaluate the external classification performance. Then the factors affecting the financial decision analysis and the financial decision process in the cloud accounting era are introduced, and finally, some problems in traditional enterprise decision methods and the impact of intelligent algorithms on enterprise financial decisions are analyzed. In terms of the existing problems, the main ones are: 83% of them think that the traditional enterprise decision-making methods need to be innovated, and 83% of them think there is a shortage of professionals with professional financial decision-making expertise. On the impact of intelligent algorithms on enterprise financial decision-making, 88% think that the decision analysis dimension has been broadened based on intelligent algorithms, and 85% think that the decision risk has achieved fine control. The development and application of intelligent algorithms and cloud accounting technology have an important and positive effect on the financial decision-making mode of enterprises.

Financial literacy as a major catalyst in the area of inclusive growth has obtained utmost prevalence, based on which this study intended to analyze the role of financial literacy in ensuring financial inclusion which further enhances socio-economic empowerment in rural areas of Karnataka, India. In order to conduct the study 398 responses (i.e. 93% response rate) were collected through comprehensive questionnaire which was then analyzed using SPSS 26 and SPSS AMOS 23 software, as SEM (Structural Equation Modeling) was used to evaluate the proposed conceptual model, as well as two-way ANOVA to analyze the demographic effect on the components. The study outcome confirmed that financial inclusion is highly affected by the financial literacy of a rural community in a direct way; but when they can take effective financial decision and are responsible in financial behavior, they tend to show more financial inclusion which has contributed to their socio-economic empowerment. Realizing the dominant role of financial literacy one of the key policy implications of this article is that the Indian government may begin spending considerable amounts of money to promote financial literacy, which can significantly expand financial inclusion. Furthermore, measures might be taken to discover the gaps in digital financial transaction (online and mobile banking) where the Government of India should be aggressive in building the infrastructure for financial inclusion, which would aid in the socio-economic growth of the rural people.

Scarcity often encourages decisions that favor the present over the future. While prevailing theories largely attribute these decisions to myopic, impulsive decision making, five studies find support for an alternative, less prevalent perspective. We introduce the time horizon of threatened needs as an important determinant of scarcity's effect on intertemporal choice, demonstrating that people's decisions under scarcity reflect attempts to address threatened needs. Data from the Federal Reserve Bank of Philadelphia (Study 1) and preregistered studies (N = 10,297) show that time horizon moderates intertemporal decisions under scarcity. Study 2 manipulates scarcity perceptions among people engaged to be married, leading to increased preferences for sooner outcomes when wedding dates have shorter time horizons and a significant reversal when wedding dates have longer time horizons. Study 3 demonstrates that time horizon predicts intertemporal choice only when the intertemporal choice can help address threatened needs. Study 4 holds expense salience constant and replicates the moderation by time horizon using a paradigm that manipulates both scarcity and time horizon. Study 5 introduces multiple needs that vary in time horizon and importance, finding that decisions under scarcity reflect consideration of both the importance and temporal proximity of needs. These findings align with the perspective that people facing scarcity attempt to make decisions that are contextually appropriate. This work underscores the importance of understanding contextual variation in experiences of scarcity, suggests that decision making under scarcity is less thoughtless than presumed by the impulsive, myopic account, and offers recommendations for interventions for changing behavior under scarcity. [ABSTRACT FROM AUTHOR]

The sustainability issues surrounding conventional agriculture motivate the need for exploring new sustainable methods of farming, critical for global sustainable development. Vertical farming is a potentially underexplored component of sustainable food production portfolio. This paper offers the first quantitative model in the environmental economics and policy literature that evaluates the economic prospect of vertical farming systems in a competitive market setting. Our framework identifies the principal factors to assess the economic and risk aversion potential of vertical farming and utilize a decision model quantify the trade-off between the two alternative farming practices. The model is utilized to evaluate the competitive economic prospect of vertical farming in seven locations with heterogeneous climate and economic conditions within the USA. The results quantify the value proposition of vertical farming in various conditions. Consequently, we leverage these results to evaluate the current and future prospect of the vertical farming industry. [ABSTRACT FROM AUTHOR]

We apply a demand-based approach to study consumer behavior in the credit card market. Using a national database of U.S. card accounts, we find consumers internalize both rates and fees when making purchasing, borrowing, and late payment decisions on their card. Moreover, price effects broadly align with a rational model of card use. An exception is less borrowing in response to declining late-fees among subprime consumers. Extension of the rational model based on "focusing theory" explains this behavior. It also implies substantial indirect benefits of the CARD Act's late-fee cap from subprime users' re-focusing toward reducing their debt. [ABSTRACT FROM AUTHOR]

This paper uses the case of Ukraine to explore the association between attitudes and saving behavior. We hypothesize that individuals' preferences and beliefs, which we proxy with support for left-wing populist economic policies, have an adverse effect on strategic, forward-looking behavior. Using the data from a nationally representative survey conducted in 2019, we find that support for populist economic policies has a negative association with a likelihood to have bank savings. The results hold in the presence of socio-economic and behavioral factors and when we remove the variation attributed to the cultural and socio-economic factors from our measure of economic populism. [ABSTRACT FROM AUTHOR]

We provide evidence that investor behavior is sensitive to two dimensions of subjective uncertainty concerning future asset values. Investors vary in the extent to which they attribute market uncertainty to (1) missing knowledge, skill, or information (epistemic uncertainty) and (2) chance or stochastic processes (aleatory uncertainty). Investors who view stock market uncertainty as higher in epistemicness (knowability) are more likely to reduce uncertainty by seeking guidance from experts and are more responsive more responsive to available information when choosing whether to invest. In contrast, investors who view stock market uncertainty as higher in aleatoriness (randomness) are more likely to reduce uncertainty through diversification, and their risk preferences better predict whether they choose to invest. We show, further, that attributions of uncertainty can be perturbed by the format in which historical information is presented: charts displaying absolute stock prices promote perceptions of epistemicness and greater willingness to pay for financial advice, whereas charts displaying the change in stock prices from one period to the next promote perceptions of aleatoriness and a greater tendency to diversify. This paper was accepted by Yuval Rottenstreich, behavioral economics and decision analysis. Funding: This material is based upon work supported by the National Science Foundation [Grant SES-1427469] to C. R. Fox and Gülden Ülkümen. Additional support for this work was provided by INSEAD and UCLA Anderson School of Management. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2022.4489. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Abant Social Sciences / Abant Sosyal Bilimler Dergisi is the property of Journal of Abant Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Existing research demonstrates that financial constraints are widespread and influence consumer attention, preference, choice, and consumption in a variety of ways. Despite the growing knowledge of how financial constraints affect the consumer decision-making process, less is known about its impact on post-purchase behavior. This work examines whether financial constraints impact an important post-purchase behavior—word of mouth—and in what direction. Seven studies show that financial constraints reduce purchase-related word of mouth. This effect emerges across consumers' reported frequencies of discussing their purchases, as well as their intentions, desires, and real decisions to engage in word of mouth. This effect is explained by reduced anticipated pleasure of engaging in purchase-related word of mouth, which results from financially constrained consumers' belief that rehearsing their monetary expenditures will reinforce negative feelings about their limited financial situation. This effect cannot be similarly explained by other accounts such as impression management or the desire to hoard informational resources. Further, the authors show that the reduction in anticipated pleasure from word of mouth is specific to sharing about one's monetary expenditures. Thus, financial constraints reduce purchase-related word of mouth, but they do not universally decrease one's propensity to share. [ABSTRACT FROM AUTHOR]

Financial literacy as a major catalyst in the area of inclusive growth has obtained utmost prevalence, based on which this study intended to analyze the role of financial literacy in ensuring financial inclusion which further enhances socio-economic empowerment in rural areas of Karnataka, India. In order to conduct the study 398 responses (i.e. 93% response rate) were collected through comprehensive questionnaire which was then analyzed using SPSS 26 and SPSS AMOS 23 software, as SEM (Structural Equation Modeling) was used to evaluate the proposed conceptual model, as well as two-way ANOVA to analyze the demographic effect on the components. The study outcome confirmed that financial inclusion is highly affected by the financial literacy of a rural community in a direct way; but when they can take effective financial decision and are responsible in financial behavior, they tend to show more financial inclusion which has contributed to their socio-economic empowerment. Realizing the dominant role of financial literacy one of the key policy implications of this article is that the Indian government may begin spending considerable amounts of money to promote financial literacy, which can significantly expand financial inclusion. Furthermore, measures might be taken to discover the gaps in digital financial transaction (online and mobile banking) where the Government of India should be aggressive in building the infrastructure for financial inclusion, which would aid in the socio-economic growth of the rural people. [ABSTRACT FROM AUTHOR]

Information modality refers to the use of different sensory channels to process information when making decisions: for example audible or visual information. This study examines the impact of information modality on investors making financial decisions. A Repertory Grid analysis is performed to derive features and functionality to create an Amazon Echo Show system for financial decision-making. This system is used to present a mixture of both audio and visual information to facilitate financial decision-making. The system is tested through the lens of the modality effect to determine the best method of presenting financial data to investors to inform their decision-making. Findings show the inferiority of audible information over visual information for retail investors' decision-making, especially for numerical data. However, with adjustments in information length and by prioritising non-numerical data, audible information could be of significant benefit when designing future systems to aid investor decision-making. [ABSTRACT FROM AUTHOR]

Why are people often uncomfortable dealing with financial decisions? We propose that people perceive financial decisions—more so than decisions in many other equally complex and important domains—as compatible with a cold, analytical mode of thinking and as highly incompatible with feelings and emotions. Consequently, the more people perceive themselves as inclined to rely on affect in their decisions, the more they experience self-concept incongruity with financial decisions (i.e., feeling that financial decisions are “not them”), and consequently show an increased tendency to avoid such decisions. Five studies demonstrate this phenomenon, using both consequential and hypothetical decisions; provide evidence for the proposed mechanism; and rule out alternative accounts, including perceived financial knowledge, expertise and self-efficacy perceptions, decision confidence, and preference for numerical information. The findings contribute to research on thinking styles and decision avoidance, and they underscore a unique characteristic of financial decisions that makes them stand out among many other decision types. In addition to their theoretical significance, the findings have practical implications for the communication of financial products and services. [ABSTRACT FROM AUTHOR]

Consumers incorrectly rely on their sense of understanding of what a company does to evaluate investment risk. In three correlational studies, greater sense of understanding was associated with lower risk ratings (Study 1) and with prediction distributions of future stock performance that had lower standard deviations and higher means (Studies 2 and 3). In all studies, sense of understanding was unassociated with objective risk measures. Risk perceptions increased when the authors degraded sense of understanding by presenting company information in an unstructured versus structured format (Study 4). Sense of understanding also influenced downstream investment decisions. In a portfolio construction task, both novices and seasoned investors allocated more money to hard-to-understand companies for a risk-tolerant client relative to a risk-averse one (Study 5). Study 3 ruled out an alternative explanation based on familiarity. The results may explain both the enduring popularity and common misinterpretation of the “invest in what you know” philosophy. [ABSTRACT FROM AUTHOR]

This research finds that when a single gain has strong associations with multiple costs, consumers often mentally deduct that gain from perceived costs multiple times. For example, with some price promotions (e.g., spend $200 now and receive a $50 gift card to spend in the future), consumers mentally deduct the value of the price promotion from the cost of the first purchase when they receive the promotion, as well as from the cost of the second purchase when they use the promotion. Multiple mental deductions based on a single gain result in consumers’ perceptions that their costs are lower than they actually are, which can trigger higher expenditures. This mental accounting phenomenon, referred to as “double mental discounting,” is driven by the extent to which gains feel associated, or coupled, with multiple purchases. This article also documents methods to decouple promotional gains from purchases, thus mitigating double mental discounting. [ABSTRACT FROM AUTHOR]

Mental accounting research suggests that consumers prefer borrowing for longer-lasting purchases in order to receive benefits from the purchases as they pay for them. In contrast, two sets of archival data and five lab studies show that consumers are more willing to borrow for experiential versus material purchases, even though experiential purchases tend to have a shorter physical duration. Further, framing the same purchase as more experiential than material increases willingness to borrow. This effect occurs because purchase timing is more important for experiential purchases--a function of consumer's aversion to missing out on planned consumption. Thus, we moderate the proposed effect by varying whether the borrowing decision impacts planned consumption. Other differences between material and experiential purchases, such as scarcity or expected happiness, cannot similarly explain our results. Moreover, our conceptualization allows us to reconcile the apparent contradiction between the previous and current research by examining the relative impact of purchase-timing importance and payment-benefit duration matching in different contexts (i.e., "purchasing" and "source-of-funding" decisions). [ABSTRACT FROM AUTHOR]

Based on a 12-year bibliographic record collected from the Web of Science (Thomson Reuters) database, the present study aims to provide a macroscopic overview of the knowledge domain in financial decision making (FDM). A scientometric and bibliometric analysis was conducted on the literature published in the field from 2010 to 2021, using the CiteSpace software. The analysis focuses on the co-occurring categories, the geographic distributions, the vital references, the distribution of topics, as well as the research fronts and emerging trends of financial related decision making. The steady increase of papers published year by year demonstrated the increasing interest on this topic at the international level. The scientometric analysis of the literature showed that financial decision, investment decision, and financing decision stood out of the crowd of the research on FDM, suggesting their important role in FDM and its research. The results of citation burst analysis predicted the focus of topics, i.e., the impact of individual differences such as financial literacy, gender and age on FDM in the coming years. Different from the traditional approach of literature review, this bibliometric analysis offers a scientometric approach to reveal the status quo and the development trend of FDM by macro and quantitative means. In addition, future research directions for the field are recommended. [ABSTRACT FROM AUTHOR]

Conspiracy beliefs have negative effects on decision making in several life areas including health, ethical, political and environmental domains. But their influence on financial decisions is not known. The current study examines the mediational role of social trust in the relationship between non‐financial conspiracy beliefs and stock market participation. First, exploratory findings provide preliminary cross‐country evidence that conspiracy beliefs are associated with lower stock market participation. Next, three studies from close to 53,000 United States respondents show that conspiracy beliefs predict 8%–20% decrease in the odds of investing in stocks even after adjusting for several determinants of stock ownership including income, life satisfaction, cognitive ability and economic attitudes. Mediation analyses shows that conspiracy beliefs predict lower social trust, which in turn predicts lower stock ownership. Overall, the findings imply that endorsing misleading non‐financial beliefs about the causes of socio‐cultural events may potential impede financial decision making. [ABSTRACT FROM AUTHOR]

The citizens of Turkey were confronted with the shock of the Covid-19 pandemic while struggling with high inflation and unemployment rates, and a weakening domestic currency. However, a noteworthy phenomenon during the year 2020 was the performance of stock market in Turkey, which was mostly driven by local individuals. Not only stocks, but cryptocurrencies are also popular investments favored by the populace, collectively signaling an increase in risk-taking behavior. Learning more about this point of interest is even more intriguing when considering the ongoing poor economic circumstances. In this study, the financial product decisions of individuals living in Turkey are examined for the first year of pandemic. The data were collected using an Internet survey. Information on participant's demographics, financial product choices, declarations on changes in their interest in financial markets/products, financial status, and net income after Covid-19 was used. The results show that changes were associated with several product preferences, particularly with cryptocurrency. The findings indicate that regulators/authorities need to understand the reasons and conditions which influence those financial decisions and intervene if necessary because such excessive risk taking may eventually deteriorate social and financial wealth across the whole country. [ABSTRACT FROM AUTHOR]

Everyday financial decision making and the awareness of the integrity of one's financial decision making abilities (or financial awareness) are both critical to study in older adults as they can help identify those at risk for making suboptimal financial decisions and prevent financial loss. In the current study, we examined the cognitive and cortical thickness correlates of financial decision making and financial awareness in 59 community-dwelling participants co-enrolled in a larger study (mean age=68.35 years (SD=5.5), mean education=15.91 (SD=2.36), 61% = women, 67% = White, 30% = Black participants). Data from standardized measures of financial decision making and cognition was investigated along with FreeSurfer (v. 5.3) derived thickness regions. Based on metacognitive frameworks, financial awareness was measured along with a well-validated measure of memory awareness. Results revealed that numeracy, executive functioning and vocabulary were associated with financial decision making, whereas in analysis adjusted for financial decision making, memory awareness relative to cognition was most strongly linked to financial awareness. No significant associations between thickness and financial decision making were found. However, both financial and memory awareness were associated with the same right-hemisphere temporal thickness regions underscoring the idea of a common substrate of awareness. Interestingly, our findings converge with the emerging work on financial exploitation in which the right sided temporal regions have been found to play a prominent role. Incorporating the contributing role of self-awareness in various models of financial exploitation will be an important consideration for future studies. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to analyze current research trends, identify theoretical perspectives, and identify research topics of behavioral bias in financial decision-making in the future. Research method -- To perform bibliometric analysis, this article uses a systematic literature review, as well as content analysis. This article uses a total of 51 publications between 2018 and 2022 as the sample for the literature review, directed by PRISMA. The tool used in analyzing bibliometrics is VOSviewer. Meanwhile, content analysis is conducted to build theoretical perspectives and proposed future research agendas. Result -- This systematic review explains the number of articles per year, most influential articles, leading journals, leading countries, leading authors, important keywords, and research cluster networks. Besides, this article also discovers seven behavioral biases that can be analyzed to gain a theoretical perspective on behavioral bias. The seven behavioral biases are Heuristic Bias, Self-Attribution Bias, Framing Bias, Herding Bias, Aversion Bias, Disposition Effect, and Overconfidence Bias,. In the scientific mapping analysis, important keywords are obtained, and the author's research cluster network is to discover topics that rarely researched to be offered in future research. Recommendation/significance/contribution -- In contrast to previous studies of behavioral bias, which were dominated by survey-based research, this paper provides a different reference by using a systematic literature review method that provides coverage of the main research issues and theoretical arguments about behavioral bias in financial decisions. In addition, this paper offers new ideas about potential research fields by identifying studies in developing countries that are still rarely carried out compared to developed countries. [ABSTRACT FROM AUTHOR]

Purpose — This paper aims to analyze current research trends, identify theoretical perspectives, and identify research topics of behavioral bias in financial decision-making in the future. Research method — To perform bibliometric analysis, this article uses a systematic literature review, as well as content analysis. This article uses a total of 51 publications between 2018 and 2022 as the sample for the literature review, directed by PRISMA. The tool used in analyzing bibliometrics is VOSviewer. Meanwhile, content analysis is conducted to build theoretical perspectives and proposed future research agendas. Result — This systematic review explains the number of articles per year, most influential articles, leading journals, leading countries, leading authors, important keywords, and research cluster networks. Besides, this article also discovers seven behavioral biases that can be analyzed to gain a theoretical perspective on behavioral bias. The seven behavioral biases are Heuristic Bias, Self-Attribution Bias, Framing Bias, Herding Bias, Aversion Bias, Disposition Effect, and Overconfidence Bias,. In the scientific mapping analysis, important keywords are obtained, and the author's research cluster network is to discover topics that rarely researched to be offered in future research. Recommendation/significance/contribution — In contrast to previous studies of behavioral bias, which were dominated by survey-based research, this paper provides a different reference by using a systematic literature review method that provides coverage of the main research issues and theoretical arguments about behavioral bias in financial decisions. In addition, this paper offers new ideas about potential research fields by identifying studies in developing countries that are still rarely carried out compared to developed countries.

The study aims to explore the effect of behavioral biases on financial decision making in the real estate sector of Pakistan. The data of a sample of 244 real estate investors are collected through a survey carried out using different sources. The findings of the study show the relationship of different biases, including overconfidence, herding effect, gambler’s fallacy, and regret aversion on prices of real estate. Real estate prices are more affected by overconfidence and gambler’s fallacy than herding effect and regrets aversion bias in Pakistan. The findings furthermore reveal that these biases do not depend on gender, education, and demographics. It is recommended to carefully consider the market factors while making decisions in real estate, as the prices do not always show the real value of the property.