Theory and practice of behavioral finance: rationality and irrationality in decision-making

Abstract

Тhe purpose of the article is to analyze the main provisions, postulates and possibilities of applying the theory of behavioral finance in modern conditions. Tasks of the work: research of the theory of prospects, rational and irrational models of human behavior; factors influencing financial decision making; tracing the evolution of scientists' views on the essence of finance; compiling a survey in Google Forms for practical justification of the viability of the behavioral direction. The methodological basis of the article is the analysis of Russian and foreign literature, scientific articles and the presentation of ideas of outstanding authors in the field of behavioral finance. The data obtained in the course of the study allow us to speak about the limited rationality of a person when making decisions: the desire to obtain maximum benefits, but choosing the optimal option that is most convenient for him at a given time, taking into account external factors.