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Behavioral Biases of Individual Investors: The Effect of Anchoring

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  • Salma Zaiane

    (FSEG Tunis, Tunisia)

Abstract

The objective of this paper is to investigate the presence of the anchoring bias in the financial decision making of individual investors. A survey study is carried out to find out how the studied bias affects the investment behavior on the Tunisian stock market. The survey is for exploratory purpose and it is based on multiple factorial correspondence analyses. The results reveal that Tunisian investors do not suffer from the anchoring bias.

Suggested Citation

  • Salma Zaiane, 2015. "Behavioral Biases of Individual Investors: The Effect of Anchoring," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 3(1), pages 13-19.
    • Handle: RePEc:ejn:ejssjr:v:3:y:2015:i:1:p:13-19
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    References listed on IDEAS

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    1. Drew Fudenberg & David K. Levine & Zacharias Maniadis, 2012. "On the Robustness of Anchoring Effects in WTP and WTA Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(2), pages 131-145, May.
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    4. Jonathan E. Alevy & Craig E. Landry & John A. List, 2015. "Field Experiments On The Anchoring Of Economic Valuations," Economic Inquiry, Western Economic Association International, vol. 53(3), pages 1522-1538, July.
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    6. Furnham, Adrian & Boo, Hua Chu, 2011. "A literature review of the anchoring effect," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 35-42, February.
    7. Meub, Lukas & Proeger, Till, 2014. "An experimental study on social anchoring," University of Göttingen Working Papers in Economics 196, University of Goettingen, Department of Economics.
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