Risk Tolerance in Financial Decision Making

1. Front Matter

   Pages i-xii

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2. Introduction

   • Caterina Lucarelli

   Pages 1-7

3. The Role of Risk in the Investment Decision Process: Traditional vs Behavioural Finance

   • Camilla Mazzoli, Nicoletta Marinelli

   Pages 8-66

4. Household Behaviour and Debt Demand

   • Daniela Vandone

   Pages 67-80

5. The Traditional Approach to Risk Tolerance

   • Nicoletta Marinelli, Camilla Mazzoli

   Pages 81-112

6. Risk of Over-Indebtedness and Behavioural Factors

   • Luisa Anderloni, Daniela Vandone

   Pages 113-132

7. Decision Making: Psychological Perspective

   • Gianni Brighetti, Cristina Ottaviani, Valeria Nucifora, Rosita Borlimi

   Pages 133-152

8. The Layout of the Empirical Analysis

   • Caterina Lucarelli, Cristina Ottaviani, Daniela Vandone

   Pages 153-162

9. The Indicators of Risk

   • Caterina Lucarelli, Giulio Palomba

   Pages 163-180

10. Results on the Investment Side

    • Caterina Lucarelli

    Pages 181-205

11. The Determinants of Household Debt Holding: An Empirical Analysis

    • Daniela Vandone, Cristina Ottaviani

    Pages 206-215

12. The Implications for Market Participants and Regulators

    • Gianni Brighetti, Caterina Lucarelli, Daniela Vandone

    Pages 216-228

13. Back Matter

    Pages 229-269

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This book sheds light on the emotional side of risk taking behaviour using an innovative cross-disciplinary approach, mixing financial competences with psychology and affective neuroscience. In doing so, it shows the implications for market participants and regulators in terms of transparency and communication between intermediaries and customers.

• behavior
• communication
• decision making
• emotion
• Investment
• neuroscience
• psychology
• banking

• Department of Economics, Polytechnic University of Marche, Italy

  Caterina Lucarelli

• Department of Psychology, University of Bologna, Italy

  Gianni Brighetti

LUISA ANDERLONI Full Professor of Corporate Finance at the Faculty of Political SCiences, University of Milan, Italy ROSITA BORLIMI psychotherapist at the Department of Psychology, University of Bologna, Italy NICOLETTA MARINELLI iResearch Fellow in Economics of Financial Intermediaries at the Faculty of Economics, 'La Sapienza' University, Rome, Italy CAMILLA MAZZOLI Assistant Professor of Economics of Financial Intermediaries at the Faculty of Economics, Polytechnic University of Marche, Ancona, Italy VALERIA NUCIFORA psychotherapist at the Department of Psychology, University of Bologna, Italy CRISTINA OTTAVIANI postdoc at the Department of Psychology, University of Bologna, Italy GIULIO PALOMBA Assistant Professor of Econometrics at the Faculty of Economics, Polytechnic University of Marche, Ancona, Italy DANIELA VANDONE Assistant Professor of Economics of Financial Intermediaries at the Faculty of Political Sciences, University of Milan, Italy

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