Behavioural Economics / Finance
Absolute beginners: behavioural economics and human happiness. Behavioural Economics. Homo Economicus? Behavioural Economics Applied. Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance. Kahneman & Tversky.
Robert Shiller. Psychology/Sentiment. Whenever we see any sort of disruption in markets an explanation usually follows.
The headlines will explain that “Markets are going up/down because of this good/bad thing.” News anchors will solemnly intone why the volatility is significant and what it means for one thing or another. None of these casual explanations can withstand close examination. They are often things that have existed for months or years, and so can’t account for what happened yesterday.
Stocks are fully valued, and have been for a while, so why is it that valuations suddenly matter after not mattering at all? Psychology.
The Psychology and Judgment of Decision Making
Dan Ariely: 2008 was a good year for behavioral economics. Dan Ariely’s second TEDTalk premieres today — and so does the second, revised and expanded edition of his book Predictably Irrational.
It’s full of new material, incuding Ariely’s thoughts on the irrationality of the economic collapse that happened since the book debuted in February 2008. Below, Ariely muses on the way the world has changed between then and now: Before the ﬁnancial crisis of 2008, it was rather difficult to convince people that we all might have irrational tendencies. For example, after I gave a presentation at a conference, a fellow I’ll call Mr. Dan Ariely asks, Are we in control of our own decisions? Dan Ariely offers 3 irrational lessons from the Bernie Madoff scandal. Dan Ariely, the author of Predictably Irrational, presented a jaw-dropping talk on cheating and dishonesty at TED2009.
We’re posting Ariely’s TEDTalk next Tuesday, and we asked him for his thoughts on the Bernie Madoff scandal unfolding now in New York: The first chapter of the Bernie Madoff fiasco has come to a close, with Madoff pleading guilty to 11 charges of fraud yesterday. Madoff’s massive Ponzi scheme was horrific on many levels. But while we watch the next phase of the scandal, it’s important to ask: What lessons are we going to learn from this? I can see three lessons that relate to my work studying human irrationality — and in particular, some non-useful lessons we might learn. Dan Ariely on our buggy moral code.
Herd Behaviour. AS & A2 Economics - Intensive Exam Coaching & Revision Workshops: Book Now!
Stratford | Fulham | Bristol | Birmingham | Gateshead | Leeds | Manchester Monday, November 28, 2011 PrintEmailTweet This! Economics | 14.127 Behavioral Economics and Finance, Spring 2004 | Lecture Notes. That’s My Stock You Just Trashed -- GuruFocus.com. I am constantly amazed how individuals react to articles written about stocks they maintain in their portfolio.
Recently, much discussion has occurred on this website and across the internet on the purchase of Skype by Microsoft (MSFT). Those that hold Microsoft are certain that it is a great buy and a great product that will allow the company to expand. Kenyan Sex Markets and Behavioral Finance | Empirical Finance Blog. Jonathan Robinson and Ethan Yeh A free, unpublished version of the paper can be found here.
The published version can be found here (you have to be a member of the AEA). Abstract: Robert Shiller on Behavioral Economics. In the past twenty years there has been a revolution in economics with the study not of how people would behave if they were perfectly rational, but of how they actually behave.
At the vanguard of this movement is Robert Shiller of Yale University. He sits down with Nigel Warburton in this episode of the Social Science Bites podcast. Social Science Bites is made in association with SAGE. Click HERE to download a PDF transcript of this conversation. The full text also appears below. Your Decisions Are Irrational--And You Don't Realize It