# A Cognitive DSS for Investment Decision Making: Challenges & Opportunities

> MeRC Working Paper #13 by Bhandari and Hassanein, November 2004: a conceptual model of investor misjudgment and an architecture for a cognitive investment DSS.

Page URL: https://merc-mcmaster.ca/working-papers/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.