Original document was submitted as an honors thesis requirement. Copyright is held by the author.

Document Type



This paper examines how business and financial decision making are influenced by behavioral biases such as cognitive ease, overconfidence, herding and the endowment effect. I do this in two ways. First, I show historical examples of irrational decisions and the detrimental effects on the individual, society, the company, and shareholders from these decisions. Second, I conduct a survey of business students to examine how susceptible they are to behavioral biases. I find that most students are in fact allowing cognitive easing to alter their decisions negatively.