Psychological Perspectives on Financial Decision Making

Download Psychological Perspectives on Financial Decision Making written by Tomasz Zaleskiewicz, Jakub Traczyk in PDF format. This book is under the category Finance and bearing the isbn/isbn13 number 3030454991/9783030454999. You may reffer the table below for additional details of the book.


SKU: 045cf83ab072 Category: Tag:



Tomasz Zaleskiewicz, Jakub Traczyk






591 pages









Book Description

This ebook examines the most recent findings from the fields of neuroscience, psychology, and behavioral economics, focusing on how people make decisions regarding their finances when faced with real-world challenges. The book is broken up into three parts that investigate the process of financial decision making on three different levels: the level of the brain; the level of society; and the level of an individual decision-maker. The final part of the book discusses the implications of these findings for future research.

Among the subjects that were discussed are:


  • Getting older and making decisions about money
  • Crashing of the stock market and inflated market prices
  • Neurological and endocrine underpinnings of economic decision making
  • Methods of coping with the uncertainty that is present when making financial decisions
  • Personality, cognitive ability, emotional states, and economic choices are all taken into consideration.
  • Perspectives on borrowing money, gambling, contributing to charity, and paying taxes from a psychological point of view


Researchers in and outside of the field of psychology, such as consumer psychologists, decision-making experts, and behavioral economists, will find the Psychological Perspectives on Financial Decision Making (PDF) to be a useful resource.

PLEASE TAKE NOTE That the purchase comes with a PDF version of the ebook titled “Psychological Perspectives on Financial Decision Making.” There are no access codes contained within.

Table of contents

Table of contents :
About the Editors
Part I: The Level of the Brain
Chapter 1: Neural Bases of Financial Decision Making: From Spikes to Large-Scale Brain Connectivity
Spiking Neurons
The Anatomy of the Neuron
The Neuron at Rest: The Membrane Potential
The Neuron in Action: The Action Potential
Communication from One Neuron to the Next
From Neurons to Networks
Methodological Tools Used in Neuroscience
Single-Unit Recording
Functional Magnetic Resonance Imaging (fMRI)
Electroencephalography (EEG) and Magnetoencephalography (MEG)
Measuring the Communication Between Brain Regions
Manipulating Brain Activity
The Reward Circuit
A Network of Cortical and Subcortical Structures
Dopamine Neurons Encode a Reward Prediction Error (and More)
Decision Making as Evidence Accumulation
The Principle of Evidence Accumulation
Evidence Accumulation in Single Neurons and Population of Neurons
Evidence Accumulation in Large-Scale Brain Activation and Connectivity
Concluding Remarks
Chapter 2: Neural Correlates of Decision Variables and Strategic Preferences
Decision Neuroscience: An Overview
Neuroscience and Financial Decision Making
Risk and Uncertainty
Neuroscience and Strategic Decision Making
Future Directions
Chapter 3: Hormones, Stress and Financial Decision Making
The Significance of Making Decisions and the Variety of Finance
Cognition Versus Emotion
The Role of Reward in Financial Decisions
The Brain and Financial Rewards
Risk Appetite and Financial Decisions
Hormones and Financial Decisions
Stress and Its Influence on Financial Decisions
The Endocrine Stress Response
Cortisol and Decision Making
Stress and the Brain
The Nature and Function of Testosterone
Lifetime Trajectory of Testosterone
Testosterone, Risk and Rewards
The Menstrual Cycle and Decisions in Females
The Importance of Trust: Oxytocin
Interactions Between Hormones: The Importance of Endocrine Patterns
The Covert Action of Hormones in Financial Decision Making
Part II: The Level of an Individual Decision Maker
Chapter 4: Cognitive Abilities and Financial Decision Making
Statistical Numeracy
Multiple Numeric Competencies
Approximate Numeracy
Subjective Numeracy (Numeric Confidence)
How to Improve Financial Decision Making?
Cognitive Training and Education
Cognitive Training
Decision Aids
Chapter 5: The Arrested Deployment Model of Financial Literacy
Financial Literacy
From Literacy to Rationality
The Arrested Deployment Model
Implications of the Model
The Arrested Deployment Model in Action
Emotional Influences
Financial Avoidance
Tasks’ Features: Complexity and Timing Gratification of Financial Engagements
The Long-Term Influence of a Financial Intervention Program: A Case Study
Chapter 6: Emotions and Financial Decision Making
Emotions in Financial Decision Making: How Theoretical Views Have Changed over the Last 20 Years
Integral Emotions
The Functions of Integral Emotions in Decision Making
Anticipated Emotions
Mental Imagery as an Affective Input to the Decision Making Process
Incidental Emotions
The Functions of Incidental Emotions in Decision Making
Mood as a Special Case of Incidental Emotions
The Effects of Mood on Stock Market Behaviors
Concluding Remarks
Chapter 7: Financial Decision Making and Individual Dispositions
Saving and Personality
Saving and Time Perspectives
Saving and Self-Control
Saving and Motivational Systems
Investing and Personality: The Big Five Model
Investing and the Dark Triad of Personality
Investing and Time Perspectives
Investing and Motivational Systems
Psychological Dispositions and Borrowing
Borrowing and Personality: The Big Five Model
Borrowing and Self-Control
Borrowing and Locus of Control
Financial Cheating
Psychological Dispositions and Financial Cheating
Financial Cheating and Personality: The HEXACO Model
Financial Cheating and Personality: The Big Five Model
Financial Cheating and the Dark Triad of Personality
Concluding Remarks
Chapter 8: Aging and Financial Decision Making
Cognitive Deliberation and Age-Related Differences in Financial Decision Making
Age-Related Differences in Cognitive Deliberation
Age-Related Differences in Cognition and Motivation
Experience-Based Knowledge and Age-Related Differences in Financial Decision Making
Age-Related Differences in Experience-Based Knowledge
Emotions and Age-Related Differences in Financial Decision Making
Age-Related Differences in Emotion and Motivation
Decision Aids
Future Directions
Measurement Issues
Social Context of Financial Decisions
Maturational Change Vs Cohort Differences
Chapter 9: Financial Decision Making Under Uncertainty: Psychological Coping Methods
The Uncertainty Challenge: Rational Models in an Irrational Market
Lessons from Russell’s Turkey
Under Uncertainty, Less Is More
Reducing Uncertainty with Simple Heuristics and One-Reason Decision Making
Demarcating Uncertainty with Decision Reference Points
Implications for Thinking, Fast and Slow and the Dichotomy of Systems 1 and 2
Part III: The Level of the Society
Chapter 10: Stock Markets, Market Crashes, and Market Bubbles
The Omnipresent Stock Markets Bubbles and Crashes
Taxonomy of Stock Markets, Bubbles, and Crashes
The Individual’s Experience of Extreme Market Events
Typical Biases on the Stock Market
The Role of Individual Differences on the Trading Floor
Experimental Asset Markets
Econophysics: What Social Scientists Could Learn from Physicists or the Other Way Round?
Concluding Remarks
Chapter 11: Cognitive Processes Underlying Impaired Decision Making in Gambling Disorder
From Harmonious to Obsessive Gambling Passion
Gambling Disorder and Decision Making
Impaired Cognitive Processes in Gambling Disorder
Motor Response Inhibition
Cognitive Flexibility
Reactivity to Monetary Gains and Losses
Hypersensitivity Toward Gambling-Related Stimuli
Attentional Bias
Implicit Associations
Neural Cue Reactivity
Self-Control Mechanisms Involved in Gambling Harm Reduction
Concluding Remarks
Chapter 12: The Psychological Perspective on the Antecedents and Consequences of Consumer Borrowing
Antecedents of Borrowing Decisions
Consumption Desires and Borrowing
Attitude Towards Borrowing
Borrowing Decisions
Consequences of Borrowing for Well-Being
Satisfaction with Consumption
Psychological Concomitants of Debt and Over-Indebtedness
Concluding Remarks
Chapter 13: Tax Compliance: Research Methods and Decision Processes
Tax Compliance: Theoretical Models and Determinants of Compliance
Rational Choice Model
Rationality and Anomalies
Bomb Crater Effect
Echo Effect
Source of Income
Behavioral Choice Model
Mental Accounting
The Social Contribution Dilemma
Economic and Psychological Determinants of Compliance
Knowledge, Attitudes, and Tax Morale
Personal Characteristics: Demographics, Personal Values, and Norms
Social Norms
Perceived Fairness and Trust
Motivational Postures
Integration of Economic and Psychological Insights: The Slippery Slope Framework
Methods in Tax Research
Field Experiments
Comparison of Methods
Information Processing in Tax Decisions
Eye Tracking
Mouse Tracking: Mouselab and Mouse Tracker
Mouse Tracker
Neural Techniques and Peripheral Psychophysiology
Practical Implications
Chapter 14: A Psychological Perspective on Charitable Giving and Monetary Donations: The Role of Affect
Affect as a Motivator of Charitable Giving
Scope Insensitivity and Compassion Fade
Limitations of the Affect System
Iconic Victims and the Power of Affect to Motivate Charitable Giving
Debiasing Scope Insensitivity and Compassion Fade
Perceived Effectiveness and Pseudoinefficacy
A Dual-Process Model of Pseudoinefficacy
Debiasing Pseudoinefficacy

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