A Cognitive DSS for Investment Decision Making: Challenges & Opportunities

Working Paper #13 by Gokul Bhandari and Khaled Hassanein, November 2004.

• Psychological biases strongly influence investment decisions.
• The paper proposed a conceptual model of investor misjudgment.
• It builds on the three-stage human information-processing model.
• Biases are classified as long-term or short-term.
• That classification enables debiasing mechanisms in a DSS.
• An architecture was suggested using human attitudes modeling technologies.
• The work filled a behavioral finance gap in IS literature.

Keywords: investment decision making, cognitive DSS, psychological biases, behavioral finance.