Brahmana, Rayenda and Hooy, Chee Wooi and Ahmad, Zamri
(2016)
Debunking the Monday Irrationality through the External
Affection of Investors.
Gadjah Mada International Journal of Business, 18 (1).
pp. 83-105.
ISSN 1141-1128
Abstract
This study aims to reveal the mechanism of the influences of the full moon and high temperatures
on investors’ Monday irrationality. In contrast to other studies, this research was built under a
retroductive approach by using a time series quasi experimental study. Investors were directly assessed for
their irrationality by using an adapted psychometric test on 4 occasions. The results indicate that there were
indeed effects of the full moon and high temperatures on investors’ irrationality. Because the full moon
and high temperatures frequently occurred on Mondays, it is most probably those two variables that were
the drivers of the Monday irrationality. In the end, we concluded that the rational behaviour assumption
can no longer be held. Instead of rationality, the investors were quasi rational. The utility function of Von
Neumann-Morgenstern in decision making has to be replaced by the hedonic utility.
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