INVESTOR EXPERTISE AND THE RATIONALITY OF DECISION MAKING

Marcin Rzeszutek; Monika Czerwonka; Magdalena Walczak

doi:10.18778/0208-6021.310.10

Authors

Marcin Rzeszutek Collegium of Management and Finance, Warsaw School of Economics, Poland
Monika Czerwonka Collegium of Management and Finance, Warsaw School of Economics, Poland
Magdalena Walczak Collegium of Management and Finance, Warsaw School of Economics, Poland

DOI:

https://doi.org/10.18778/0208-6021.310.10

Keywords:

investor expertise, behavioral bias, rationality, behavioral finance

Abstract

The aim of the paper is to is to explore the determinants of the rationality in decision making among polish stock market investors with different level of expertise with investing. Rationality in decision making was defined from the behavioral finance point of view and was operationalized as the frequency of some behavioral biases (see: the certainty effect) within decision making process. In particular, this study aims to investigate the degree of susceptibility the certainty effect among people of various levels of expertise with investing. As there is still a lack of data studies in behavioral finance literature investigating the issues mentioned in this article (or existing results are ambiguous) we treated our study as an exploratory research.

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Author Biography

Marcin Rzeszutek, Collegium of Management and Finance, Warsaw School of Economics, Poland

1) To whom correspondence should be addressed:
Marcin Rzeszutek, Warsaw School of Economics, Collegium of Management and Finance, 02-554, Warsaw, Niepodleglosci 162, Poland. e-mail: mrzeszutek@o2.pl

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