Behavioral finance

The Greek stock market again showed its inability to set “mounds”, with sellers maintaining the lead for a fifth consecutive day. In addition, the previously 1,400 support point turned into resistance. Apart from banks – the familiar negative protagonist – the energy sector also exerted strong pressure on the board.

In the modern capitalist world, behaviors and decisions are shaped through external influences created by the architecture of the environment in which we interact.

Business expectations in industry deteriorated last month, with the index compiled by the Foundation for Economic and Industrial Research (IOBE) for Hellenic Production - Council of Industries for Growth showing a significantly lower reading than in February.

Fears about inflation and soaring bond yields have sent the Dow plunging 6.5% through the first four trading days of this week. That would be the steepest decline in any week since October 2008.

Turkey launched on Nov. 20 its first behavioral economics project, “Nudge Turkey,” which aims to use psychology in the analysis of economic decision-making.

Thirty years ago Wall Street slid into the abyss, suffering the biggest one-day market fall of over 22 percent. Since then the Dow Jones has risen from 1,738 points to an all-time high of over 23,000, raising fears another historic crash is on the cards.

The Nobel Prize for Economics for this year was awarded to American economist Richard Thaler for his contribution to the development of the Behavioral Economy, the Swedish Academy of Sciences said, quoted by news agencies.