The Investment Decision Making Model Considering Psychological Factor

Abstract

In recent years, many researchers pay attention to behavioral finance. Behavioral finance focuses on investor's irrationality. In the field of behavioral finance, researchers are trying to elucidate cause of investor's decision making by observation. Some researchers constructed mathematical model of investor's decision making considering investor's psychological factor using an artificial market. However, these researches didn't fully express the psychological factors and real investor's decision making. Therefore, we construct investor's decision making model depending on investor's loss and profit using an artificial market. And we tested efficiency of our model.