Publication Date
Fall 2025
Faculty Supervisor
Marsh Jones
Description
The aim of this literature review is to understand the relation between the Cognitive Dissonance Theory and investor decision-making. Under the Investor Rationality Theory, investors are perceived to act in their best interest financially after gathering all available information on their investment. Behavioral Finance on the other hand is the study of psychological biases and emotions and how they influence investors, causing them to act rather irrationally and consequentially creating an irrational market.
Rights
Copyright is owned by the creator of this work.
Recommended Citation
Adams, Noah A., "Behavioral Finance: The Influence Cognitive Dissonance Has on Investors" (2025). A with Honors Projects. 322.
https://spark.parkland.edu/ah/322
