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Behavioral economics emphasizes the importance of empirical evidence and facts that contradict traditional economic assumptions. Several empirical studies have shown that individuals are prone to systematic bias in decision-making, as they do not always make decisions that are in their best interest. Behavioral Economics and Behavioral Finance aim to incorporate psychological aspects into the decision-making process, although it focuses on financial decisions and financial markets. This paper aims to describe the concept of economic behavior and its relation to financial behavior in decision-making using a literature survey. Behavioral economics and behavioral finance involve the science of psychology to study economics and finance, explaining that human biases can influence people's financial decision-making. This paper examines some of the behavioral biases that usually occur in investor decision-making, such as heuristics, overconfidence, mental accounting, and loss aversion, etc. and each of them shows their own representation and the way they influence decision-making
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