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This paper describes how financial professionals' behavioral biases influence their financial forecast and decision-making process. Most of the earlier studies are focused on well-developed financial markets, and little is researched about financial professionals, such as institutional investors, portfolio managers, investment advisors, financial analysts, etc., in emerging markets.

An expert-validated questionnaire measure four prominent behavioral biases and Indian financial professionals' rational decision-making process. The final sample consists of 274 valid responses using the purposive sampling technique. IBM SPSS and AMOS structural equation modeling (SEM) software are used to build measurement and structural models, multivariate analysis including regression, factor analysis, etc.

The results provide empirical insights into the relationship between behavioral biases and the decision-making process. The results suggest that the structural path model closely fits the sample data. The presence of behavioral biases indicates that financial professionals' forecasting and decision-making is not always rational but bounded rational or irrational due to these factors. Furthermore, these biases (except overconfidence bias) have a markedly significant and positive relationship with irrational decision-making.

It is critical to eradicate these psychological errors, but awareness and attentiveness toward behavioral biases may help financial professionals to make informed decisions. Investors can improve their portfolio decisions and investments by recognizing their judgment errors and focusing on specific investment strategies to mitigate the impact of these biases. It is necessary to incorporate behavioral insights while developing training techniques for financial professionals. Rules of thumb, visual tools, financial coaching and implementing social-cultural elements in training programs enable financial professionals to develop simple, engaging, appealing and customized approaches for their clients.

This novel study is the first of this kind of research that examines the relationship between financial professionals' behavioral biases and rational decision-making process. This study significantly and remarkably provides insights into irrationality in financial professionals' decision-making.

This commentary argues that social marketing and the application of behavioural sciences to policy constitute two converging paths towards better policies. It highlights points of convergence and divergence between both disciplines and the potential benefits of further embedding social marketing principles and methods within the recent trend of applying behavioural sciences to policy.

The commentary relies on a review of the behavioural sciences and social marketing literatures and on an analysis of institutional reports reviewing cases of behaviourally informed policies.

Behavioural sciences are increasingly informing policies to promote societal well-being. Social marketing has seldom been explicitly considered as being part of this phenomenon, although it is de facto. Both disciplines share similar end-goals, inform similar policy applications and are rooted in behavioural analysis. They diverge in their theoretical frameworks, their relative emphasis on behaviour change and the span of interventions they generate. Several benefits of embedding social marketing principles and methods within the current way of applying behavioural sciences to policy are identified.

Scholars applying behavioural sciences to policy are encouraged, when appropriate, to use the insights and methods from social marketing. Social marketing can engage in a dialogue with behavioural sciences to explore how to pilot the convergence of both approaches in practice.

The novelty of this contribution lies in providing the first comparison of the application of behavioural sciences to policy with social marketing, and in using the policy-making cycle framework to map the contributions and complementarities of both disciplines.

The paper draws on the key themes raised at a Round Table discussion on behavioural finance attended by academics and practitioners. The paper provides a background to the key aims of behavioural finance research and the development of the discipline over time. The purpose of this paper is to indicate some future research issues on behavioural finance that emanate from the financial crisis and highlight areas of mutual benefit to both behavioural finance academics and the finance industry so as to encourage a creative cross‐fertilisation.

The paper draws on a Round Table discussion on behavioural finance that was organized by the Behavioural Finance Working Group, the Centre for the Study of Financial Innovation and Financial Services Knowledge Transfer Network.

The paper highlights numerous benefits that behavioural finance research can contribute to the financial industry, but at the same time there is an evident discrepancy between the academic and the professional world when it comes to utilising behavioural finance research.

The paper highlights several areas where behavioural finance can contribute significant benefits to a wide array of aspects of the finance industry.

The paper seeks to inform behavioural finance issues so as to encourage collaboration between the academic world and finance practitioners. In so doing, the paper aims to encourage a greater awareness of individual decision‐making frames and heuristics and how industry can apply these concepts to improve the allocation of finance products to society.

The paper brings together a wide array of finance professionals and academics to encourage greater collaboration and mutual respect of each others interest in and uses for behavioural finance.

This study aims to identify the origins, mechanisms and outcomes of applying behavioral insight in public policy research.

The authors conducted a systematic literature review to answer three research questions. The authors identified 387 primary studies, dated from January 2000 to April 2021 and coded them through a thematic analysis. Related studies were obtained through searching in Emerald, ScienceDirect, Sage, Springer, Wiley and Routledge.

The results identified eight themes for origins, 16 themes for mechanisms/techniques and 13 outcome-related themes. Through the thematic analysis, the major mechanisms of behavioral approach were found to be social marketing, information provision, social norms, incentives, affect, regulation design, framing, salience, defaults, simplification, networking, environment design, scheduled announcements, commitments, attitude-preference-behavior manifestation and combining behavioral and nonbehavioral mechanisms.

The findings of this review help policymakers to design or redesign policy elements.

This review provides the first systematic exploration of the existing literature on behavioral public policy.

This paper aims to explore the relevance of bounded rationality to the practice of institutional investors in Malaysia. Understanding institutional investor behavior is important, as it can determine the asset prices and consequently the market behavior.

A set of questionnaires is used to solicit information regarding the understanding and practical application of behavioral finance theories and strategies among fund managers in the Malaysian investment management practice. In the process, bounded rational theory is aimed to be validated. Fund managers’ possible bounded rational behavior is assessed with reference to their investment management approaches and strategies right from individual beliefs and acquisition of information, as well as investment management and strategies used.

The findings lend support to the notion that institutional investors too, being normal human beings, are expected to think and behave in a boundedly rational manner as postulated in bounded rational theory. The sources of bounded rationality are individual, institutional and social forces. Thus, portfolio trading and investment management strategies are exposed to wide varieties of behavioral risks. Despite the notions that behavioral risks are real and the impact on fund performance could be pervasive, fund managers’ self-awareness regarding control and institutional readiness to govern behavioral risks in investment practices is still low.

Empirical evidence drawn in the current paper is subjected to small sample size and specific focus on Malaysian context. Despite this limitation, the sample is statistically sufficient and provides a fair representation, as well as quality opinions, of fund manager’s investment management behavior in Malaysia. This research provides valuable implications to practitioners (fund managers) and regulators (investment management and capital market policymakers). In practice, the current study draws some practical ideas, especially for buy-side institutional investors, on the source and impact of behavioral biases on fund management practices and performance. For regulators, this research highlighted the needs and possible ways to regulate these behavioral risks.

The current paper provides new insights on the theory and practice of the institutional investor. In theory, this research provides evidence of bounded rationality of institutional investor behavior, practicing in the asset management industry in the emerging markets of Malaysia. This evidence lends support to the validity of the bounded rationality theory in explaining institutional investor behavior. In practice, thisresearch provides new insights on the relevance of behavioral finance perspectives and strategies in the asset management industry practice and policy.

This paper aims to review the theory and empirical evidence of institutional investor behavioral biases in the lenses of behavioral finance paradigm. It surveys the research specifically focusing on behavioral biases among institutional investors in investment management activities worldwide.

A literature survey is done to gather and synthesize evidence on behavioral biases of institutional investors.

The survey and analysis reveal the following findings. First, the theoretical underpinning of investors’ irrational behavior has been neglected in behavioral finance research. Second, the behavioral heuristics and biases are dynamic and complex. Third, understanding behavioral biases’ origin, causes and effects requires interdisciplinary perspectives from the fields of psychology, sociology and biology.

The analysis and alternative perspectives drawn in this paper provide new insights into the field of behavioral finance and aims to suggest researchers, practitioners and regulators on the next course of actions.

This study aims to review the expanding use of different aspects of behavioral science in the corporate environment.

This study presents an examination of the academic literature and media reporting on behavioral science in the corporate environment, including risk management, recruiting, employee rewards and group decision-making.

While there are some ethical risks in the application of behavioral science in the corporate environment, many aspects of corporate decision-making and corporate culture would benefit from behavioral science insights.

While there have been numerous pieces written about individual aspects of behavioral science in the corporate environment, to the best of the author’s knowledge, this is one of the first to look at the application of the discipline from a comprehensive perspective.

The purpose of this study is to address a critical gap in enterprise resource planning (ERP) implementation process for small and medium-sized enterprises (SMEs) by acknowledging and countering cognitive biases through a cognitive bias awareness matrix model. Cognitive biases such as temporal discounting and optimism bias often skew decision-making, leading SMEs to prioritize short-term benefits over long-term sustainability or underestimate the challenges involved in ERP implementation. These biases can result in costly missteps, underutilizing ERP systems and project failure. This study enhances decision-making processes in ERP adoption by introducing a matrix that allows SMEs to self-assess their level of awareness and proactivity when addressing cognitive biases in decision-making.

The design and methodology of this research involves a structured approach using the problem-intervention-comparison-outcome-context (PICOC) framework to systematically explore the influence of cognitive biases on ERP decision-making in SMEs. The study integrates a comprehensive literature review, empirical data analysis and case studies to develop the Cognitive Bias Awareness Matrix. This matrix enables SMEs to self-assess their susceptibility to biases like temporal discounting and optimism bias, promoting proactive strategies for more informed ERP decision-making. The approach is designed to enhance SMEs’ awareness and management of cognitive biases, aiming to improve ERP implementation success rates and operational efficiency.

The findings underscore the profound impact of cognitive biases and information asymmetry on ERP system selection and implementation in SMEs. Temporal discounting often leads decision-makers to favor immediate cost-saving solutions, potentially resulting in higher long-term expenses due to the lack of scalability. Optimism bias tends to cause underestimating risks and overestimating benefits, leading to insufficient planning and resource allocation. Furthermore, information asymmetry between ERP vendors and SME decision-makers exacerbates these biases, steering choices toward options that may not fully align with the SME’s long-term interests.

The study’s primary limitation is its concentrated focus on temporal discounting and optimism bias, potentially overlooking other cognitive biases that could impact ERP decision-making in SMEs. The PICOC framework, while structuring the research effectively, may restrict the exploration of broader organizational and technological factors influencing ERP success. Future research should expand the range of cognitive biases and explore additional variables within the ERP implementation process. Incorporating a broader array of behavioral economic principles and conducting longitudinal studies could provide a more comprehensive understanding of the challenges and dynamics in ERP adoption and utilization in SMEs.

The practical implications of this study are significant for SMEs implementing ERP systems. By adopting the Cognitive Bias Awareness Matrix, SMEs can identify and mitigate cognitive biases like temporal discounting and optimism bias, leading to more rational and effective decision-making. This tool enables SMEs to shift focus from short-term gains to long-term strategic benefits, improving ERP system selection, implementation and utilization. Regular use of the matrix can help prevent costly implementation errors and enhance operational efficiency. Additionally, training programs designed around the matrix can equip SME personnel with the skills to recognize and address biases, fostering a culture of informed decision-making.

The study underscores significant social implications by enhancing decision-making within SMEs through cognitive bias awareness. By mitigating biases like temporal discounting and optimism bias, SMEs can make more socially responsible decisions, aligning their business practices with long-term sustainability and ethical standards. This shift improves operational outcomes and promotes a culture of accountability and transparency. The widespread adoption of the Cognitive Bias Awareness Matrix can lead to a more ethical business environment, where decisions are made with a deeper understanding of their long-term impacts on employees, customers and the broader community, fostering trust and sustainability in the business ecosystem.

This research introduces the original concept of the Cognitive Bias Awareness Matrix, a novel tool designed specifically for SMEs to evaluate and mitigate cognitive biases in ERP decision-making. This matrix fills a critical gap in the existing literature by providing a structured, actionable framework that effectively empowers SMEs to recognize and address biases such as temporal discounting and optimism bias. Its practical application promises to enhance decision-making processes and increase the success rates of ERP implementations. This contribution is valuable to behavioral economics and information systems, offering a unique approach to integrating cognitive insights into business technology strategies.

In dynamic business environments, organizations must constantly adapt and learn. Nudging, a concept from behavioral economics, offers a novel approach to influence organizational behavior and learning. This article explores the integration of nudging within organizational learning, drawing from Thaler and Sunstein’s work and organizational learning theories. Also, To investigate nudging’s role in organizational learning and propose a practical nudging framework, while addressing ethical considerations.

The article combines theoretical insights from behavioral economics (Thaler and Sunstein; Kahneman) with organizational learning theories (Argyris and Schön). It discusses real-world nudging applications, like Google's health initiatives, and examines the ethical aspects of workplace nudging.

Nudging effectively influences organizational decisions and strategies by targeting rapid cognitive processes. It finds application in training, performance management, and decision-making, with a critical focus on ethical implications, especially regarding autonomy and non-manipulation.

This study highlights the potential of behavioral economics in reshaping organizational learning, emphasizing the importance of ethical application in developing adaptive, learning-focused organizational cultures.

Nudging offers a promising method for enhancing organizational learning. Applied ethically, it can improve workforce engagement, performance, and adaptability. Future research should focus on nudging's long-term organizational impacts and ethical boundaries.

Craft beer (CB) has gained prominence in the on-premise trade in the USA, which has become the world’s largest market for CB. Academically based research in the hospitality domain examining consumer behavioral psychology-based constructs in the situational consumption context of restaurants has, however, not kept pace with market reality. This study aims to examine how product involvement, knowledge, opinion leadership-seeking, risk perception, information processing and their interactions affect consumption of CB by consumers in the situational context of restaurants in the USA.

A national sample of 697 consumers from across the USA covering all categories of restaurants, including bars, pubs and brewpubs, informs the development of a structural equation model (SEM) of the motivational process to examine these effects. In the process, the authors validate latent construct measurement scales specific to CB consumption in the restaurant environment.

The results support main hypotheses confirming the existence of distinct motivational relationships, thus explicating the processes by which consumers’ CB product involvement, product knowledge, opinion leadership-seeking and risk perception are activated, influence one another and their subsequent information processing-related outcomes. The findings also confirm the unstable nature of the situational involvement construct, the stability of enduring involvement and the pivotal role of psychological risk on opinion leadership and opinion seeking as well as on other antecedents. As far as the interaction effects between the constructs are concerned, the authors confirm five mediating effects and one moderating effect.

Strategies should be developed by hospitality managers to identify consumers with higher enduring involvement with CB. Strategies should also be implemented that mitigate psychological, social and functional risk. The insights into the motivational relationships pertaining to CB consumption in restaurants should be integrated into drinks menu design and be considered in how service staff are trained.

This research provides nuanced insights from a motivational perspective of consumers in the situational context of restaurants from a holistic and consumer-centric behavioral psychology perspective providing deepened insights of focal behavioral psychology constructs and their roles in the hospitality domain.