Behavioral Finance in the Digital Era: Saving and Investment Decisions

This book provides an in-depth look at the challenges faced by individuals making investment decisions in a rapidly changing financial world and offers a comprehensive overview of the multifaceted approach to investment and savings behavior. It explores behavioral digital finance, referencing the latest theories in economic psychology and financial markets, and analyzes the process of saving and investing in the context of our new digital reality. It combines an accessible overview of classical and new behavioral theories, models of financial decision-making, and an analysis of the new trends in financial decision-making. Special attention is given to financial decision support systems and the role of financial advice services, which are of growing importance due to their increasing complexity and difficulty. The book combines theoretical considerations and wide-reaching empirical analyses from a representative sample of international respondents and deals with the individual approach to human risk-taking, human-AI interaction, and its benefits and threats. Chapter 4 is freely available as a downloadable Open Access PDF.

Format: Hardback
Length: 196 pages
Publication date: 18 December 2023
Publisher: Taylor & Francis Ltd

Due to the rapid pace of technological advancements and the ensuing digital revolution, a multitude of innovative digital financial products and services have emerged in the financial markets, as exemplified by the fintech sector, the economics of blockchain and NFT issuance. This comprehensive book delves into the challenges faced by individuals making investment decisions in a rapidly evolving financial landscape and offers a concise yet thorough overview of the multifaceted approach to investment and savings behavior. It explores behavioral digital finance, drawing upon the latest theories in economic psychology and financial markets, and provides an analysis of the process of saving and investing in the context of our new digital reality, where an understanding of human-AI interaction and its potential benefits and risks is paramount. The book seamlessly combines an accessible overview of classical and contemporary behavioral theories, models of financial decision-making, and an examination of emerging trends in financial decision-making. Special emphasis is placed on financial decision support systems and the growing significance of financial advice services, owing to their increasing complexity and difficulty.

The book combines theoretical considerations with extensive empirical analyses from a representative sample of international respondents. It addresses the individual approach to human risk-taking, human-AI interaction, and its potential benefits and threats. The book explores how individuals respond to algorithms, what factors drive algorithm aversion and appreciation, and how understanding these mechanisms can be leveraged to enhance financial advisory systems. Additionally, it considers the impact of the COVID-19 pandemic on financial behavior.

Chapter 4 of this book is freely available as a.pdf download on the publisher's website.

Weight: 540g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032508719