The Impact of Behavioral Finance on Household Financial Decision-Making and Asset Pricing Strategies

1. Introduction 1.1 Background of Behavioral Finance 1.2 Importance of Household Financial Decisions 1.3 Objective and Scope of Study 2. Theoretical Framework 2.1 Concepts of Behavioral Finance 2.2 Traditional vs. Behavioral Finance 2.3 Key Behavioral Finance Theories 3. Household Financial Decision-Making 3.1 Definition and Scope 3.2 Factors Influencing Decisions 3.3 Behavioral Biases in Households 4. Behavioral Biases and Their Effects 4.1 Overconfidence and Its Impact 4.2 Loss Aversion in Investment Choices 4.3 Herd Behavior in Household Finance 5. Asset Pricing Strategies 5.1 Overview of Asset Pricing Models 5.2 Incorporating Behavioral Aspects 5.3 Comparison with Traditional Models 6. Case Studies 6.1 Case Study Methodology 6.2 Real-life Examples of Bias Impact 6.3 Analysis of Case Study Findings 7. Implications for Policy and Practice 7.1 Policy Recommendations 7.2 Financial Education Initiatives 7.3 Future Research Directions 8. Conclusion 8.1 Summary of Key Findings 8.2 Implications for Theory and Practice 8.3 Concluding Remarks