From Emotionally-Driven Frequent Decisions to Extreme Asset Allocation: The Mechanism Dissection and Integration Framework of Informationization’s Impact on Irrational Investment Decisions

DOI

10.2991/978-94-6239-801-6_50How to use a DOI?

Keywords

Informationization; Irrational Decision-making; Cognitive Bias; Aberration of Investment Behavior; Distortion of Asset Allocation

Abstract

Digital technology has profoundly reshaped the information environment of the capital market.The changes in information supply, dissemination, and acquisition brought about by informatization have exerted multi-level and transmissive impacts on the decision-making logic of investorsfrom three aspects: information structure, cognitive mode, and behavioral choice.This article is based on core theories such as prospect theory in behavioral finance, regret aversion, cognitive dissonance, and herd behavior. It follows the sequential logic of “information shock - cognitive bias - behavioral alienation - configuration distortion”, analyzing the cognitive biases caused by information overload.algorithmic cocooning, and immediate stimulation. It further explains the transmission path of investors’ shift.from rational analysis to emotional dominance, from long-term investment to short-term speculation, and from balanced allocation to extreme choices. This study systematically expounds the internal transmission mechanism by which informatization influences investors’ irrational decisions. It effectively addresses the limitations of existing research.which mostly focuses on a single dimension of analysis. Thus, it provides corresponding theoretical support and practical guidance for guiding investors to make rational decisions, preventing irrational fluctuations in the capital market, and maintaining the long-term stable and healthy operation of the market.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Pengyu Ma
PY  - 2026
DA  - 2026/10/23
TI  - From Emotionally-Driven Frequent Decisions to Extreme Asset Allocation: The Mechanism Dissection and Integration Framework of Informationization’s Impact on Irrational Investment Decisions
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 461
EP  - 471
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_50
DO  - 10.2991/978-94-6239-801-6_50
ID  - Ma2026
ER  -