Key Drivers of Behavioral Biases of Individual Investors: A case of Pakistani Investors

This study investigates the strength of behavioral biases in individual investors. A questionnaire was developed and distributed to individual investors and there selection was based on convenience sampling method. Multi criteria decision making technique of AHP was used for determining the strength of the behavioral biases of individual investors towards overall behavior of investors. Results revealed that hindsight, anchoring, representative, and loss aversion biases were most prominent biases towards shaping the behavior of individual investors along with conservatism bias which was significant and positively correlated with overall behavior of individual investors.