Social influences play a role in financial behavior from "summary" of Advances in Behavioral Finance by Richard H. Thaler
Social influences have a significant impact on financial behavior. People are influenced by the actions and decisions of those around them, often without even realizing it. This can lead to individuals making financial choices that they may not have made if they were acting independently. Social influences can come from a variety of sources, including family members, friends, colleagues, and even society as a whole. One way in which social influences can affect financial behavior is through social norms. People tend to conform to the behavior of those around them, as they want to fit in and be accepted. This can lead to individuals spending money on things that they may not actually need or want, simply because those around them are doing the same. For example, if a person's friends are all buying expensive designer clothes, they may feel pressure to do the same in order to be seen as part of the group. In addition to social norms, social comparison also pl...
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