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Every day to we make decisions that require us to reconcile our desire to be satisfied immediately with our desire to improve upon our current situation, which often requires waiting. People tend to devalue future rewards as a function of the time they must wait receive them, a phenomenon known as a delay discounting. Nearly all species exhibit delay discounting, yet there is a striking level of inter-individual variability in discounting severity. In humans, discounting rate predicts a wide array of outcomes such as academic achievement, drug addiction, salary, and obesity. Such correlational relationships have led some to argue that discounting is a stable trait. Contrary to this perspective, several studies have shown that discounting rates may gradually decrease with age. There is also evidence that contextual factors can more immediately alter an individual's discounting rate. One such factor is how information is presented, or "framed". The way in which options are framed-even if they are logically equivalent-can influence choice. Framing a choice as a loss often leads to avoidance that option, i.e. to loss aversion. Delay discounting and susceptibility to loss framing have thus far only been studied in isolation, yet in day to day life we regularly must consider both temporal and loss information, particularly as we become older. This study seeks to the bridge delay discounting, framing, and normative aging literatures to examine (1) whether reframing choices can reduce delay discounting; (2) what factors drive individual differences in discounting and framing susceptibility; (3) to what extent these phenomena interact with age; and (4) a potential application of these findings in the context of Social Security claiming. / Psychology

Background: Generation Z is the first generation to grow up with the Internet as a part of their daily lives, shaping their investment behavior. They favor innovative investments, contrasting Generation X’s preference for stable portfolios. The younger generation displays irrational behavior, contributing to market volatility. Sweden is facing higher interest rates after a prolonged period of low rates. Despite rising interest rates, young shareholders are increasing.  Purpose: This study aims to explore how psychological biases affect investors’ trading activity and the impact of psychological biases on Generation Z and Generation X during elevated interest rates. It focuses on three behavioral biases: overconfidence, herd behavior, and loss aversion. With the growing involvement of young investors in the financial market, this study aims to provide insights for investors, decisionmakers, and other stakeholders to raise awareness of the effects of psychological biases in investment decisions. Method: This study used a quantitative strategy to apply a positivistic, deductive research approach. The data was collected through a survey where which 132 respondents participated. The empirical data was analyzed using simple linear regression, binary logistic regression, and Mann-Whitney U-test.  Conclusion: The results support some of the hypotheses. Results indicate a significant influence of overconfidence on investment behavior and that Generation Z showed larger tendencies of overconfidence than Generation X. Herd behavior affects investment behavior but no generational differences could be found. Additionally, Generation Z was less loss-averse compared to Generation X, although it does not impact investment behavior.

The sunk-cost fallacy (SCF) occurs when an individual makes an investment with a low probability of a payoff because an earlier investment has already been made. It is considered an error because a rational decision should not factor in now-irretrievable investments, as they do not affect current outcome likelihoods. Previous research has measured the tendency to commit the SCF by using hypothetical scenarios in which participants must choose to make a future investment or not after making an initial investment. There are many theories as to why people commit the SCF. Loss aversion, which is the preference for uncertain over certain losses, may be related to the SCF. Dual-process theory, which views decision-making in terms of a fast, automatic process called system 1 and a slow, deliberate process called system 2, may also help to explain the SCF. In Experiment 1, participants were asked to complete a sunk-cost questionnaire in which the initial-investment types and amounts varied. They also completed an endowment-effect task as a measure of loss aversion. The SCF was committed most often when the initial investment was large compared to small and most often with money, less with time, and least with effort. There was an interaction effect in which small differences were seen in the SCF between time, effort, and money when the initial investment was small, and differences grew larger as the initial investment increased. Loss aversion displayed a non-significant negative relation with the SCF. In Experiment 2, participants completed a sunk-cost questionnaire in which they were asked to respond as they normally would and then from the perspective of a fictional person described as a logical decision maker. In cases in which they committed the SCF, they were asked to indicate why they continued to invest. They also completed a risky-lottery loss-aversion task. As seen in Experiment 1, the SCF was more likely when initial investments were greater and occurred most when the initial investment was money, less when it was time, and least when it was effort. Loss aversion had a significant but small negative relation with SCF scores. There was no effect of perspective taking. It may be that the SCF is simply due to the over-application of the personal rule “don't waste”, as not wanting to be wasteful was the most-common reason participants gave for why they committed the SCF.

The benefits of converting single-person drivers to alternative transit options are well-established. One option to accomplish this is for employers to provide alternative commute incentive programs. However, the research on the implementation of such programs is lacking. To provide a test, this research analyzes data obtained from a field experiment on daily alternative transit commute choices for a seven-month period. Participants are divided into four treatment groups in a two-by-two design for the first three-month period: incentives with either loss or gain framing, and messaging nudges with either the private or public benefits of alternative transit commute choices. The participants then continue in the field experiment for the remaining four-month period with all groups receiving only gain framing incentives and messaging nudges are discontinued. The results from the two time periods are compared. Loss framing and private messaging have the most significant effect on participants’ decisions to revert back to single-person driving when nudges are discontinued, and thus nudges are not persistent. The incentive program did not provide enduring conversion to alternative transit options, but the results suggest employers who want to optimize their alternative transit incentive programs should utilize loss framing incentives and combine both private and public messaging into continuous nudges.

The fear of failure is something most people encounter on a daily basis and a common acceptance is; the more at stake, the harder is the process to make the right decision.This study examines how the variable “fear of failure” affects a strategic decision toexpand abroad. The study is based on a qualitative method and four CEOs of internationalized companies have been interviewed. Positivistic and deductive approaches are applied. Among the four companies risks was seen as a necessity fordeveloping the organization, but unnecessary risks were avoided. Finally, the study shows that fear affects internationalization decisions, especially in the form of lossaversion and uncertainty avoidance, where the uncertainty increased as physical and psychological distances increased. / Att rädsla för att misslyckas finns omkring oss är något som de flesta är medvetna om och oftast är det så att ju mer som står på spel, desto svårare blir processen att komma fram till rätt beslut. Studien har undersökt hur variabeln rädsla för att misslyckas påverkar ett strategiskt beslut om att etablera sig utomlands. Uppsatsen är byggd på en kvalitativ metod där fyra internationaliserade företag har studerats genom intervjuer. Vidare utgår studien från ett positivistiskt synsätt och ett deduktivt angreppssätt tillämpas. Bland de fyra företagen sågs risker som nödvändigt för att utveckla organisationen, men man tog helst inte onödiga risker. Avslutningsvis visar studien att rädsla påverkar internationaliseringsbeslut framförallt i form av förlust- och osäkerhetsaversion, där osäkerheten ökade med ökade fysiska och psykiska avstånd.

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior / This paper aims to investigate the influence of behavioral biases in financial education framing, mental accounting and loss aversion. Therefore, we prepared a questionnaire involving the identification of financial education and the three behavioral biases. The implementation of the survey instrument was conducted in three different samples of undergraduate students of the Federal University of Santa Maria, previously classified as high, intermediate and low level of financial education. The groups characterized as low and intermediate level of financial education confirmed their classification, and considered highlevel group, presented the intermediate grade. The framing effect was seen only in the low level of financial education, mental accounting, in all groups, however in a less expressive in the high grade group of financial education, and loss aversion was present also for three groups. However, through an individual examination for all respondents in the sample, conducted by correspondence analysis, it was found that the presence of behavioral biases is found in greater amounts in the low level of financial education. / O trabalho objetiva verificar a influência da educação financeira nos vieses comportamentais framing, contabilidade mental e aversão à perda. Para tanto, elaborou-se um questionário envolvendo a identificação da educação financeira e dos três vieses comportamentais. A aplicação do instrumento de pesquisa foi realizada em três grupos amostrais de alunos de graduação da Universidade Federal de Santa Maria, previamente classificados como alto, intermediário e baixo nível de educação financeira. Os grupos caracterizados como baixo e intermediário nível de educação financeira confirmaram sua classificação, e o grupo considerado como alto nível, apresentou o grau intermediário. O efeito framing foi verificado apenas no grupo de baixo nível de educação financeira; a contabilidade mental, em todos os grupos, no entanto de forma menos expressiva no grupo de alto grau de educação financeira; e a aversão à perda mostrou-se presente igualmente para os três grupos. No entanto, através de um exame individual para todos respondentes da amostra, realizado por meio da análise de correspondência, detectou-se que a presença dos vieses comportamentais é verificada em maior quantidade no grupo de baixo nível de educação financeira.

Titre: Categorisation et évaluation de l'innovation :approche par la théorie des prospects appliquée au cas du vin allégé en alcool.Chaque année de très nombreuses innovations sont proposées sur le marché, mais seul un nombre réduit d'entre elles rencontre le succès espéré. Face à ce constat, l'une des explications avancées par la recherche marketing est la difficulté du consommateur à catégoriser un nouveau produit.Ce travail s'insère dans le courant de recherches sur la catégorisation de l'innovation et suggère de tenir compte de l'incertitude qui caractérise ce processus. L'originalité de cette étude est de proposer un lien entre les recherches sur la catégorisation de l'innovation et celles sur la prise de décision en condition d'incertitude. La Théorie des Prospects (Kahneman et Tversky, 1979) en particulier, et l'un de ses principes, celui d'aversion aux pertes, ont fourni un cadre théorique adapté pour tenir compte du caractère d'incertitude de l'innovation. Notre question de recherche a proposé de vérifier si le principe d'aversion aux pertes pouvait s'appliquer pour expliquer comment la modification de certains attributs d'une catégorie provoque la perception d'une rupture et la création d'une nouvelle catégorie de produits par le consommateur.La partie empirique de ce travail a été appliquée dans le domaine le vin, un produit qui traverse une grave crise de consommation. Nous avons retenu une approche expérimentale à travers six études conduites sur des innovations du secteur vinicole. Les résultats ont permis de mettre en évidence le rôle majeur joué par la nature de l'attribut dans la catégorisation ainsi que son influence sur la perception des ruptures d'une catégorie.Du point de vue managérial, les conclusions de ce travail ont pour objet l'efficacité des stratégies d'innovation qui agissent sur les attributs d'un produit et sur leur capacité à différencier une innovation parmi la concurrence. Cette recherche fournit également des suggestions quant au positionnement et à la communication à mettre en place pour faciliter la compréhension d'un nouveau produit et donc son choix par le consommateur. / Title: Categorization and evaluation of innovation: a prospect théory approach applied to the case of low alcohol content wine Every year numerous innovations are available on the market but only a small number meet the hoped-for success. Given this fact, one of the explanations offered by marketing research is the difficulty the consumer has to categorize a new product. This work is part of current research on the categorization of innovation and suggests to consider the uncertainty that characterizes this process. Its originality is to propose a link between research on the categorization of innovation and those of decision making under uncertain conditions. Prospect Theory (Kahneman et Tversky, 1979), in particular, and one of its principles, that of loss aversion, this research has provided a theoretical framework adapted to take into account the uncertainty of innovation. Our research question proposes to determine whether the principle of loss aversion can be applied to explain how the modification of certain attributes of a class causes the perception of a break and create a new category of products by the consumer. The empirical part of this work was conducted on wine, a product that is going through a major crisis of consumption. We chose an experimental approach across six studies conducted on innovations in the wine sector. The results were used to highlight the major role played by the nature of the attribute in the categorization and its influence on the perception of breaks in a category. From the managerial point of view, the conclusions of this work relate to the effectiveness of innovation strategies that affect the attributes of a product in their ability to differentiate an innovation from competition. This work also provides suggestions for the positioning and communication set up to facilitate the understanding of a new product and therefore its choice by the consumer.

In december 2019, the first cases of covid-19 were reported in Wuhan, China. Since then, the virus has spread rapidly around the world. In order to try to stop the spread of the virus, isolation has become actual. Except affecting the public health, the virus has caused deep traces in the global economy. A clear stock market fall on the Swedish stock exchange could be observed in February-March 2020. The financial crisis that has arisen is the first crisis many of the young investors, of the age 18–30 years old have to manage. Due to the economic crisis that has arisen, this study aimed to describe young investors' decision-making in the financial market during the period 1 January 2020 to 5 May 2020. The research question goes as follows: What factors influence young investors' decision-making in the financial market during an economic crisis? The study was conducted on the basis of the Theory of Behavioral Finance. This theory assumes that the individual's decision-making in the financial market is largely influenced by emotions and other psychological factors. Furthermore, the theory is based on a number of different assumptions about human psychological and behavioral phenomena that influence investment decisions. The procedure for conducting the study was to make a descriptive quantitative study. This meant that a questionnaire was passed on to young investors and that the answers were then compiled in diagrams and tables. The results indicated that the factors overconfidence, representativeness bias and anchoring bias seemed most likely to describe young investors' decision-making in the financial market during an economic crisis. At the same time, a reasonable interpretation seemed to be that herding behavior and risk and loss aversion cannot describe the young investors' decision-making to a large extent. The importance of mental accounting could not be determined in this context, as the answers received provided an incomplete basis for deciding this. To be able to draw conclusions about the role of mental accounting in decision-making, several issues that dealt with this would have been useful. One suggestion for continued research is to study other factors that may underlie young investors' decision-making during an economic crisis.

<p>Predmet ovog istraživanja je ponašanje donosilaca odluka u uslovima<br />neizvesnosti. Na osnovu sprovedene simulacije među subjektima i<br />dobijenih rezultata, cilj ove disertacije je da se utvrde dominantni<br />faktori prilikom poslovnog odlučivanja u uslovma kada donosiolac<br />poslovnih odluka ne raspolaže informacijama potrebnim za ispravno<br />donošenje odluka u trenucima kada njegova investicija ostvaruje<br />gubitak. Prilikom utvrđivanja sklonosti donosioca odluke u obzir je<br />uzet i pol donosioca odluke i poslovni status, kao i prethodno<br />iskazane sklonosti ka riziku.</p> / <p>The subject of this research is behavior of decision &ndash; makers in ambiguous<br />surroundings. Based on the simulation that was conducted among subjects<br />and results obtained from it, the aim of this dissertation is to establish<br />dominant factors that influence decision &ndash; making process in situations<br />where information neccesery for adequate decision &ndash; making are not<br />available to decision &ndash; makers in situations where decision &ndash; makers are<br />facing loss. Gender and employmet status were taken into consideration<br />during determination of decision &ndash; makers preferences, as well as their<br />previously exhibited risk preferences.</p>