This topic is relevant from two different points of view. First of all, from an academic
perspective, it shows that investors’ behavior cannot be fully explained as an optimal
portfolio choice and that all the evidence of “irrational behaviors” may be indeed simply
the response to factors that are common in consumers’ choice studies but have so far
been outside the normal scope of financial research.

Second this topic is highly relevant from the point of view of the industry because it
justify the relevance of choices such as pricing, advertising budgets and product
differentiation thus downplaying the emphasis on the pure financial aspects of the
investment product.