Analysis of cognitive bias "Illusion of control" in undergraduate´s students´financial decision-making

A considerable amount of literature has proved that, when it comes to illusion of control, there is a tendency to confuse a belief with skills for obtain an expected result has a high probability of occurring ignoring all the external factors. The illusion of control has received little attention in the literature, compared to other cognitive biases. This paper is first intended to cover a gap in which the starting point is the assumption of evaluating the effects of this bias in individuals' behaviour using an experimental methodology and therefore, analyse the possibility of moderate its effects for performing a risk analysis considering every factor and detail, and being close to an optimal financial decision. Results of this reviews confirm the previous studies about the relationship of the variables while exposing a special insight about the individuals’ risk reaction when assessing the bias with the external elements that tends to increase its effects