Transactions Among Friends

  • Wesley Mendes-Da-Silva


This chapter addresses the inclusion of human behavioral aspects and implications of cognitive psychology and anthropology in decisions relating to the field of behavioral finance. It offers a broad literature review toward identifying opportunities for financial innovations that are based on the notion of friendship. This chapter also presents and discusses empirical results from two evidence-based studies, referencing 400 questionnaires answered by young adults. Principal results suggest that individuals assume different behaviors in transactions among friends rather than among strangers—friends agree about the price attributed to an asset, while strangers show the propensity to bargain. In addition, agents acting on behalf of a friend appear to devote more enforcement, even if they are not receiving any reward or are being monitored.


Trust Friendship Social networks Decision-making Financial decisions 

JEL Code

C91 L14 D23 


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Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Wesley Mendes-Da-Silva
    • 1
    • 2
  1. 1.Sao Paulo School of Business Administration (FGV/EAESP)Sao PauloBrazil
  2. 2.University of Texas at AustinAustinUSA

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