Archivio per 18 novembre 2013

18
Nov
13

Behavioral economics show that women tend to make better investments than men

See on Scoop.itBounded Rationality and Beyond

Behavioral economics show that men tend to take more financial risks and hold losing stocks longer. 

It’s happy hour at Hanaro in Bethesda, and I’m with my wife. We’re there about an hour, gobbling plates of half-price tuna rolls and washing them down with $3.50 Blue Moons. Have to hurry, happy hour ends soon. My wife slows down and cautions me to do the same. I don’t listen. Keep ’em coming, right up to 7 o’clock. Then I get the bill: $75. Yikes, how did that happen? I thought this stuff was half price! Call this stupid male tricks — or behavioral economics.

Behavioral economics tries to figure out why people consistently make irrational financial decisions — like paying $75 to jam 15 orders of sushi down your throat in an hour. The bar happy hour embodies two classic ploys that cause irrational choices: scarcity, get it now before it’s gone; and the idea of getting something for nothing, buy two pairs, get the third free. (You needed that third pair of Birkenstocks?)

See on washingtonpost.com

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18
Nov
13

Behavioral economics show that women tend to make better investments than men

See on Scoop.itBounded Rationality and Beyond

Behavioral economics show that men tend to take more financial risks and hold losing stocks longer. 

It’s happy hour at Hanaro in Bethesda, and I’m with my wife. We’re there about an hour, gobbling plates of half-price tuna rolls and washing them down with $3.50 Blue Moons. Have to hurry, happy hour ends soon. My wife slows down and cautions me to do the same. I don’t listen. Keep ’em coming, right up to 7 o’clock. Then I get the bill: $75. Yikes, how did that happen? I thought this stuff was half price! Call this stupid male tricks — or behavioral economics.

Behavioral economics tries to figure out why people consistently make irrational financial decisions — like paying $75 to jam 15 orders of sushi down your throat in an hour. The bar happy hour embodies two classic ploys that cause irrational choices: scarcity, get it now before it’s gone; and the idea of getting something for nothing, buy two pairs, get the third free. (You needed that third pair of Birkenstocks?)

See on www.washingtonpost.com

18
Nov
13

Nudging down under – Mind games could pay handsomely

See on Scoop.itBounded Rationality and Beyond

Since the media generally inconsistently report percentages I’m not sure if the stated 5-6% and 12% improvements are really in percentage terms or if they mean percentage points. If it’s the latter, those would be very large effect sizes.

“Next week the Tax Office will go public with details of an extraordinary behind-the-scenes re-engineering of the way it interacts with the public……The ATO has been quietly trialling different ways of asking for money. It has set up a ’‘simulation centre” in Brisbane to present pretend letters to real people and see how they react. It presents pretend web interfaces as well. Then, just as Google tests new search algorithms by randomly dishing up them up to some customers and not others, it posts new letters to 1000 of its randomly selected customers and old ones to the rest.

See on canberratimes.com.au

18
Nov
13

Nudging down under – Mind games could pay handsomely

See on Scoop.itBounded Rationality and Beyond

Since the media generally inconsistently report percentages I’m not sure if the stated 5-6% and 12% improvements are really in percentage terms or if they mean percentage points. If it’s the latter, those would be very large effect sizes.

“Next week the Tax Office will go public with details of an extraordinary behind-the-scenes re-engineering of the way it interacts with the public……The ATO has been quietly trialling different ways of asking for money. It has set up a ”simulation centre” in Brisbane to present pretend letters to real people and see how they react. It presents pretend web interfaces as well. Then, just as Google tests new search algorithms by randomly dishing up them up to some customers and not others, it posts new letters to 1000 of its randomly selected customers and old ones to the rest.

See on www.canberratimes.com.au

18
Nov
13

Barberis – Thaler – A SURVEY OF BEHAVIORAL FINANCE

See on Scoop.itBounded Rationality and Beyond

Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The field has two building blocks: limits to arbitrage, which argues that it can be difficult for rational traders to undo the dislocations caused by less rational traders; and psychology, which catalogues the kinds of deviations from full rationality we might expect to see. We discuss these two topics, and then present a number of behavioral finance applications: to the aggregate stock market, to the cross-section of average returns, to individual trading behavior, and to corporate finance. We close by assessing progress in the field and speculating about its future course.

See on docenti.luiss.it

18
Nov
13

Barberis – Thaler – A SURVEY OF BEHAVIORAL FINANCE

See on Scoop.itBounded Rationality and Beyond

Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The field has two building blocks: limits to arbitrage, which argues that it can be difficult for rational traders to undo the dislocations caused by less rational traders; and psychology, which catalogues the kinds of deviations from full rationality we might expect to see. We discuss these two topics, and then present a number of behavioral finance applications: to the aggregate stock market, to the cross-section of average returns, to individual trading behavior, and to corporate finance. We close by assessing progress in the field and speculating about its future course.

See on docenti.luiss.it

18
Nov
13

18 signs you’re reading bad criticism of economics

See on Scoop.itBounded Rationality and Beyond

Every mainstream science which touches on political or religious ideology attracts more than its fair share of deniers: the anti-vaccine crowd v mainstream medicine, GMO fearmongers v geneticists, creationists v biologists, global warming deniers v climatologists. Economics is no different, but economics cranks differ in that they typically make false claims about the content of economics itself, as opposed, or as a prelude, to false claims about the way the world works. That target sometimes making it hard for non-economists to differentiate crankery from solid criticism.

See on chrisauld.com




Time is real? I think not

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