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How Behavioral Biases Shape Career Choices of Students: A Two-Stage PLS-ANN Approach

Author

Listed:
  • Bharat Singh Thapa

    (Central Department of Management, Faculty of Management, Tribhuvan University, Kirtipur, Kathmandu 44613, Nepal)

  • Bibek Karmacharya

    (School of Business, Faculty of Management Studies, Pokhara University, Pokhara 33700, Nepal)

  • Dinesh Gajurel

    (Faculty of Management, University of New Brunswick, Fredericton, NB E3B 5A3, Canada)

Abstract

Career decisions are among the most consequential choices individuals make, profoundly shaping their long-term stability and overall life satisfaction. The literature suggests that behavioral biases, specifically overconfidence, herd mentality, social comparison, status quo bias, and optimism bias, can exert considerable influence on these decisions, thereby shaping students’ future career trajectories. This study adopts a behavioral perspective to examine how these biases influence career choices within a collectivist social context. A survey of 360 undergraduate and graduate business students was conducted. The collected data were analyzed using an integrated approach that combines Partial Least Squares Structural Equation Modeling (PLS-SEM) and Artificial Neural Networks (ANN), enabling the use of both linear and non-linear methods to analyze the relationship between cognitive biases and career choices. Our findings reveal that while all five biases have a measurable impact, status quo bias and social comparison are the dominant factors influencing students’ career decisions. These results underscore the need for interventions that foster self-awareness, independent decision-making, and critical thinking. Such insights can guide educators, career counselors, and policymakers in designing programs to mitigate the negative effects of cognitive biases on career decision-making, ultimately enhancing career satisfaction and workforce efficiency.

Suggested Citation

  • Bharat Singh Thapa & Bibek Karmacharya & Dinesh Gajurel, 2025. "How Behavioral Biases Shape Career Choices of Students: A Two-Stage PLS-ANN Approach," Businesses, MDPI, vol. 5(3), pages 1-31, August.
    • Handle: RePEc:gam:jbusin:v:5:y:2025:i:3:p:35-:d:1722591
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    References listed on IDEAS

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    1. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
    2. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
    3. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    4. Gigerenzer, Gerd, 2018. "The Bias Bias in Behavioral Economics," Review of Behavioral Economics, now publishers, vol. 5(3-4), pages 303-336, December.
    5. Dean, Mark & Kıbrıs, Özgür & Masatlioglu, Yusufcan, 2017. "Limited attention and status quo bias," Journal of Economic Theory, Elsevier, vol. 169(C), pages 93-127.
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