Using Behavioral Economics to Find Models of Personal Finance Decisions

Summary

The response interprets personal finance decisions broadly, covering choices such as saving, pension planning, purchases, and risk taking, along with rational and irrational behavior. It recommends searching under behavioral economics and related terms about individual economic decision making, suggesting that these labels may be more productive than the question’s initial searches for mathematical models and Nash equilibria.

The answer functions as a literature-search pointer rather than presenting a model, equations, or research findings. It directs readers to an introductory educational resource that contains terminology and references, but the document does not describe those references or evaluate their methods. Its value is therefore mainly in reframing the search topic and identifying a potentially useful field. It does not provide a framework specifically for trading or quantitative investment decisions, and readers seeking formal models would need to consult the suggested material and its citations.

Key ideas

• Personal finance choices include saving, pensions, purchases, and risk taking.
• Behavioral economics studies both rational and irrational individual economic behavior.
• Searching with behavioral economics terminology may uncover relevant research more effectively.
• The response points to an introductory resource but does not explain or assess specific models.

Tags

# Mathematical models for personal finance decisions


# Mathematical models for personal finance decisions












I'm doing some bibliographic research on mathematical models for personal finance decisions. I should like to ask whether you know any of them, because the research that I did on Google Scholar haven't produced anything. To be precise, I looked up the words combinations "personal finance decision" "mathematical model", "personal finance decision" game, "personal finance" "nash equilibria", "personal finance" "nash equilibrium" and "personal finance" "mathematical model".

Thank you in advance.

## Answer by Magic is in the chain (score 3, accepted)

https://quant.stackexchange.com/a/45097

I assume you mean individual economic decisions such as saving, pension, purchasing, and risk taking etc. and all the underlying rational and irrational behaviours. These fall under the behavioural economics and phrases such as individual economic decision and behaviour economics should produce a long list. Here is an introductory text that contains the necessary terminology and some references:

https://www.aqa.org.uk/resources/economics/as-and-a-level/economics/teach/teachers-guide-individual-economic-decision-making

Hope this helps!

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