Fear Of Missing Out (Fomo) And Fear Of A Better Option (Fobo): Psychological Nature And Effects On Financial Market Participants

This study discusses in detail the fear of missing out (FoMO), the fear of better option (FoBO) and the fear of doing anything (FoDA). I present overview, psychological basis and definitions of the FoMO, FoBO and FoDA and how their effects are amplified by the influence of social media networks use and deep penetration of internet nowadays. Òhe study will explain how FoMO, FoBO, FoDA and their interaction with social and social trading networks, increases the irrationality of traders and investors decision-making and how they can harm their financial wealth. In order to further objectify and scientifically explain the effects, associated neuronal processes, based on a functional nuclear magnetic (fMRI) experiments, will be used. This study is the first source of its kind in the Bulgarian academic literature, which aims to interpret in details the mechanism of psychological effects FoMO, FoBO, FoDA, as well as their impact on the behaviour of financial market participants. Thus, the study fills the gap in the Bulgarian academic literature in the field of behavioural finance and connects and explains the mechanism of the described effects with the author’s knowledge in the field of neuroeconomics and neuroscience.