Viral decisions: unmasking the impact of COVID-19 info and behavioral quirks on investment choices

This study investigates the impact of behavioral biases on investment decisions and the moderating role of COVID-19 pandemic information sharing. It underscores the importance of cognitive biases and sociodemographic factors for understanding investor behavior and for designing agent-based models (ABM) to simulate markets. Empirical findings show behavioral factors significantly and positively affect investment decisions, consistent with prior research. The ABM indicates younger, less experienced agents are more prone to herding and underperform relative to older, higher-income counterparts. The results offer insights into how behavioral biases and COVID-19 information sharing shape investment decisions, supporting strategies that foster more rational decision-making during crises like the COVID-19 pandemic.