Microeconomic tools for decision-making in financial markets under conditions of uncertainty and sustainable development goals achievement

Abstract

In the modern world, characterized by global interconnectedness and dynamic variability, financial markets are the epicenter of complex processes. Decision-making under conditions of uncertainty and information asymmetry is an integral part of the activities of any financial entity. Purpose. The purpose of the article is to analyze the fundamental microeconomic principles (utility theory, risk attitude, information asymmetry and portfolio theory) that underlie the behavior of individual entities, and to assess their transformation under the influence of the concept of sustainable development (ESG). Methods. The paper applies a set of economic analytical and comparative methods, including systemic and comparative analysis, to synthesize classical theories of finance and modern ESG analysis.

Results. Unlike classical models, real financial markets are full of asymmetric information, irrational behavior and unpredictable events. Microeconomics provides a key toolkit for understanding the behavior of investors who seek to maximize expected utility, taking into account the subjective assessment of risk. The central place is occupied by portfolio theory, which allows optimizing the risk-return ratio through diversification. It examines in detail how information asymmetry leads to market failures (adverse selection, moral hazard), as well as the role of behavioral economics in explaining irrational fluctuations. Critically important is the conclusion that ESG factors transform classical microeconomic analysis, turning from ethical considerations into critical indicators of long-term risk and asset potential. The integration of ESG analysis is a necessary condition for rationally maximizing financial utility and increasing the portfolio's resistance to systemic shocks.

Conclusions. The article demonstrates that microeconomics, enhanced by the integration of sustainability, is a practical tool for navigating the complex world of finance. Applying its principles allows you to develop more informed and sustainable strategies for decision-making, where the true source of success is a deep understanding of the market structure and awareness of your own attitude to risk.