Behavioural finance e knowledge management

in behavioral finance is a research approach that marks the meeting of finance with
psychology and, more generally, with the cognitive sciences and decision-making.
You leave one of the assumptions underlying traditional approaches to finance and
the economy, the perfect rationality of economic agents, to analyze the behavior of
individual agents in order to understand the effects on decision-making processes.
The need to abandon the assumption of perfect rationality stems from the fact that
this, together with the assumption of optimizing behavior, it does not seem able to
explain some empirical evidence present in financial markets. In reality, the
economic agents are neither perfectly rational nor optimizing, but are subject to
cognitive errors, which affect the selection process and, therefore, knowledge
management and how they are acquired, processed and managed information.
Moreover, economic agents do not always base their decisions on criteria of
economic-financial nature, but sometimes they are affected by different variables
that the traditional models do not take into adequate consideration. In particular,
the fully rational behavior does not give rise to distortions involving phenomena
considered as "abnormal" by the traditional finance as incompatible with the
assumptions underlying the theory of efficient markets.