The Effect of Cognitive Bias and Emotional Bias on Gold Purchase Decisions

DOI

10.2991/978-94-6239-752-1_23How to use a DOI?

Keywords

Cognitive Bias; Emotional Bias; Decision Investment

Abstract

In making investment decisions, there are phenomena that can lead to errors or biases that occur in individuals in the process of perceiving information related to investments. Perceptual bias is a psychological condition that tends to be less objective in perceiving something. Currently, the economic situation is uncertain, one of which is triggering the increase in gold prices. People are tempted by the profits obtained from buying and selling gold. However, in the buying and selling process, people will be influenced by behavioral biases that cause them to be irrational in making decisions. This will be tested based on whether there is an influence of cognitive bias and emotional bias on making investment decisions. The sampling technique used cluster random sampling, resulting in 600 respondents for the research sample. Hypothesis testing used the Smart-PLS method on 14 cognitive biases and six emotional biases on investment decisions, referring to Pompian theory. The results of the study showed that lecturers were influenced by 10 cognitive biases and four emotional biases that influenced investment decisions. Emotional bias is an inherent human trait and can change. Therefore, it must be balanced with rational thinking and character so investors can make informed decisions. Cognitive bias can be minimized through financial and investment education. In addition to understanding their risk profile, investors should also learn to recognize biases that can influence decision-making.

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  - Diana Andriani
AU  - Muhammad Andriyansyah
PY  - 2026
DA  - 2026/09/04
TI  - The Effect of Cognitive Bias and Emotional Bias on Gold Purchase Decisions
BT  - Proceedings of the9th International Conference on Business, Economics, Social Sciences & Humanities – Economics, Business and Management Track (ICOBEST-EBM 2026)
PB  - Atlantis Press
SP  - 260
EP  - 271
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-752-1_23
DO  - 10.2991/978-94-6239-752-1_23
ID  - Andriani2026
ER  -