Behavioral Finance: A Critical Literature Review using Pareto Analysis


  • Shilpi Gupta Amity Business School, Amity University Chhattisgarh, India
  • Monica Shrivastava Faculty of Management Studies, Shri Shankaracharya Technical Campus, Bhilai, Chhattisgarh, India


Behavioral finance, Behavioral biases, Investment decision, Pareto Analysis


Behavioral finance, a field that combines the psychology of investors with economics and other social sciences, has gained huge popularity in the recent past due to the volatility and complexity of the stock market. Therefore, the aim of the study is to review the literature on behavioral finance and suggest   areas for future research. To conduct a systematic literature review, research papers published between 1990 and 2021 were considered for the study. They were assessed on different parameters, such as time frame, journal, country, type of data, statistical tool, sampling techniques, behavioral biases, and their impact. Further, the proposed research model was established using Pareto analysis.  Behavioral biases and their impact have been identified. Also, the gaps and the future research area have been proposed. Based on the identified biases, a model has been proposed depicting the relationship between behavioral biases and investment decisions. The study will help academicians and future researchers   develop an understanding of behavioral finance in different dimensions of the work done in last two decades. Despite the copious literature available on the subject, the study is distinctive in its nature of conducting a literature review using a quality tool, “Pareto Analysis”


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How to Cite

Shilpi Gupta, & Monica Shrivastava. (2023). Behavioral Finance: A Critical Literature Review using Pareto Analysis . Thailand and The World Economy, 41(2), 156–183. Retrieved from