Theory Of Prospects: The Decision Making Of The Real Estate Investor In The Light Of Behavioral Finance

Most investors have a certain degree of risk aversion, so it is recommended that their decision-making process be reviewed. The objective of this study is to replicate the classic Behavioral Finance study through the methodology proposed by Tversky and Kahneman (1979) in order to understand how real estate investors that rent real estate make decisions. It is a descriptive quantitative research that used the structured questionnaire as a method of data collection. The questionnaires were applied to 85 real estate investors in the city of Vit6ria da Conquista - BA. The results show that these investors make different decisions when the same problem is reformulated. Such behavior is due to the presence of effects of certainty, reflection and isolation. These effects may influence the decision-making process of investors leading to cognitive errors and making biased and inconsistent decisions.