Abstract
This research aims to explore the antecedents behind the
generation of representativeness bias of investors in the Stock
Market of Pakistan, as well as develop its scale. Schwab
(1980)’s three-step analysis has been adopted; i.e. item
establishment, scale development and scale assessment. 30
interviews were conducted and 250 questionnaires were
distributed among brokers and investors of the Stock Market
of Pakistan. The results indicate that stock market experts and
investors can experience representativeness bias due to being,
Overwhelmed by Recent Information, Misinterpretation of
Chance and Misuse of Faith in Intuition. By confirming the
causes of Representativeness bias, Security and Exchange
Commission of Pakistan can control said bias by providing
workshops, leading to an improved economy
Altamash Khan, Taqadus Bashir. (2020) Scale Development and Exploration in Representativeness Bias Intervening Investment and Financial Decisions, Pakistan Social Sciences Review, Volume 4, Issue 1.
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