Related Experiment Video
Updated: Nov 30, 2025

Assessment of Mouse Judgment Bias through an Olfactory Digging Task
Published on: March 4, 2022
Cognitive Bias and the Extraversion Personality Shaping the Behavior of Investors
Muhammad Ishfaq1,2, Mian Sajid Nazir1, Muhammad Ali Jibran Qamar1
1Department of Management Sciences, COMSATS University Islamabad, Lahore Campus, Lahore, Pakistan.
Abstract:
The paper examines the direct and indirect effects (via investors' risk perception) of heuristic biases on investors' irrational behavior in decision-making. The study also investigates the moderating effect of investors' extraversion on both the direct and the indirect associations between heuristic biases and irrational decision-making. Based on survey data collected from 247 investors registered in various brokerage houses in Pakistan and the analyses (mediation and moderation) performed using the Process Macro technique (proposed by Hayes, 2017) in SPSS, the results of this study reveal that heuristic biases positively affect investors' irrational decision-making both directly and indirectly via risk perception. The results reveal that extraversion moderates both direct and indirect associations between heuristic biases and investors' irrational behavior in decision-making. Our findings carry useful practical implications for organizations' policymakers.
More Related Videos
08:24The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
11:51Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
Published on: March 2, 2011
Related Concept Videos
The Representativeness Heuristic
Motivational Bias
Self-Serving Bias
First Impression
Actor-Observer Effect
Unrealistic Optimism Bias