This is one major finding that came out of the relatively
new field of Behavioral Finance, which combines behavioral psychological theory with finance to try to explain why people make irrational financial decisions.
Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life - Changing Science
of Behavioral Economics by Gary Belsky and Thomas Gilovich A personal
finance guide and an introduction to a
new psychological
field, this revised edition
of the 1999 classic brings updated research and
new insights into behavior during a rough economic downturn.