Traditional financial theories have long been based on the assumption that individuals behave rationally and that financial markets are efficient. However, empirical studies conducted over time have revealed that investors frequently deviate from these assumptions in their decision-making processes due to cognitive limitations, emotional responses, and social interactions. This situation paved the way for the development of a new, interdisciplinary approach in finance, giving rise to the field of behavioral finance, which brings together psychology and economics.

This book examines the fundamental dynamics of investor behavior, the psychological factors that influence decision-making processes, and the reflections of these factors in different market structures from an interdisciplinary perspective. The chapters in the book present the theoretical foundations of behavioral finance literature and include practical analyses in light of current financial developments. The first chapters of the book address the basic concepts of investor behavior, investor types, and psychological factors that influence individual decision-making processes. Subsequent chapters examine decision architecture and framing effects within the framework of behavioral economics, revealing how individuals' preferences and perceptions can be influenced. Furthermore, the effects of positive and negative news on investor behavior in financial markets are empirically evaluated through causality analyses. Other sections of the book address the impact of digitalization on financial decision-making processes from a behavioral finance perspective. Gamified investment applications are examined in the context of individual investors' risk perception and motivations, while cryptocurrency markets are analyzed in terms of the impact of investor psychology on market dynamics in a highly volatile and uncertain environment. In this respect, the work covers behavioral approaches to new generation financial instruments as well as traditional financial markets.

This book is expected to be a valuable reference source for academics working in the field of behavioral finance and practitioners aiming to better understand decision-making processes in the finance sector. It has been prepared with the hope that it will contribute to the finance literature and shed light on a deeper understanding of investor behavior.