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The Implications for Market Participants and Regulators

  • Gianni Brighetti
  • Caterina Lucarelli
  • Daniela Vandone
Chapter
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

The overall empirical findings of our study on risk tolerance are two-fold: on the one hand, we revealed relevant incoherencies among alternative measures of risk tolerance, on the investment side of decision processes. On the other hand, we found that unknown psychological drivers affect the choice to assume debts, especially with regard to unsecured debts. The commonly shared trait of these results is that a large number of dysfunctional behaviours take place when financial decisions are considered. It is thus evidently true that correct knowledge of human mental processing is essential to control conscious/responsible investing and lending.

Keywords

Market Participant Trading Performance Risk Tolerance Financial Education Consumer Credit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Gianni Brighetti, Caterina Lucarelli and Daniela Vandone 2011

Authors and Affiliations

  • Gianni Brighetti
  • Caterina Lucarelli
  • Daniela Vandone

There are no affiliations available

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