BEHAVIORAL FINANCE: ESSENCE AND APPROACHES TO DEFINITION
Abstract
The article analyzes approaches to defining the essence of behavioral finance. The historical nature of the concept of "behavioral finance" and the main trends in its definition have been studied. The main areas of scientific knowledge of behavioral finance are highlighted, respectively, according to the psychological and economic approach. Evolutionary changes in the views of the scientific community regarding the concept of rationality of economic agents are considered. The interpretation of the concept of "behavioral finance" by domestic and foreign scientists was analyzed, the connection of behavioral finance with financial theory, practice and psychology as the basis for all definitions of their complex conceptualization was investigated. It was established that the main influence on the further development of behavioral finance is the failure of the neoclassical theory to explain a number of anomalies that are the result of irrational decisions. It has been proven that in connection with the growth of the trend of practical application of behavioral finance, the relevance of the study of the theoretical aspect of this direction of financial science is also increasing.
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