Abstract:
The goal of this paper is to discuss the rationality of market professionals and analyze the behavioral biases they are subject to. It is assumed that less biased decisions are representing more rational behavior. Analyzing the groups of finance professionals: investment fund managers and finance students it has been proven, that managers are more rational than students and their decisions are less biased. The homo oeconomicus idea in relation to the professionals operating on a capital market is analyzed in the light of economic theories evolution together with the behavioral finance findings.
Keywords: rationality, professionals, financial market, behavioral finance
DOI: 10.20472/IAC.2019.052.010
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