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Behavioral economics

Behavioral economics
There are three prevalent themes in behavioral finances:[3] Issues in behavioral economics[edit] Behavioral finance[edit] The central issue in behavioral finance is explaining why market participants make systematic errors contrary to assumption of rational market participants.[1] Such errors affect prices and returns, creating market inefficiencies. It also investigates how other participants take advantage (arbitrage) of such market inefficiencies. Behavioral finance highlights inefficiencies such as under- or over-reactions to information as causes of market trends (and in extreme cases of bubbles and crashes). Other key observations include the asymmetry between decisions to acquire or keep resources, known as the "bird in the bush" paradox, and loss aversion, the unwillingness to let go of a valued possession. Quantitative behavioral finance[edit] Quantitative behavioral finance uses mathematical and statistical methodology to understand behavioral biases. Financial models[edit]

http://en.wikipedia.org/wiki/Behavioral_economics

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Feminine psychology Feminine psychology is an approach to psychology that focuses on issues concerning gender, female human identity, and the issues that women face throughout their lives. Motherhood vs. career[edit] One dynamic outlined by feminine psychologists is the balancing act that women partake in between the more traditional role of motherhood and the more modern one of a career woman. Balancing the roles means attempting to satisfy both the need for personal achievement and the need for love and emotional security. This does not mean that the roles contradict each other. Investing Tools - NASDAQ NASDAQ.com offers a suite of free and premium tools that can help you make better investing decisions. Browse our Stock Tracking Tools & Stock Planning Tools and you're sure to find a valuable new addition to your investing toolkit. Stock Tracking Tools Get up-to-the-minute stock alerts delivered to your inbox. The Custom Stock Alerts tool automatically sends you e-mails when stocks you've entered match your pre-set conditions in the pre-market, regular hours or after-hours trading sessions. Price: Free

Herd behavior Herd behavior describes how individuals in a group can act together without planned direction. The term pertains to the behavior of animals in herds, flocks, schools, demonstrations, riots and general strikes,[1] sporting events, religious gatherings, episodes of mob violence and everyday decision-making, judgment and opinion-forming. Raafat, Chater and Frith proposed an integrated approach to herding, describing two key issues, the mechanisms of transmission of thoughts or behavior between individuals and the patterns of connections between them.[2] They suggested that bringing together diverse theoretical approaches of herding behavior illuminates the applicability of the concept to many domains, ranging from cognitive neuroscience[3] to economics. In animals[edit] A group of animals fleeing from a predator shows the nature of herd behavior.

Philosophy Karl Popper: Discussion Popper's Problem of Induction. Quotes Karl Popper Discussion of Metaphysics / Philosophy of Karl Popper's Problem of Induction & the Evolution of Absolute Truth Karl Popper Pictures, Quotes 'Objective Knowledge' In my opinion, the greatest scandal of philosophy is that, while all around us the world of nature perishes - and not the world of nature alone - philosophers continue to talk, sometimes cleverly and sometimes not, about the question of whether this world exists. They get involved in scholasticism, in linguistic puzzles such as, for example, whether or not there are differences between 'being' and 'existing'. (Popper, 1975) Introduction to Karl Popper EDGE MASTER CLASS 2008—CLASS 1 RICHARD THALER: Here is the way Sendhil Mullainathan and I have thought about the day and a half that we have here. We have a pretty good idea of what we would like to do for the first three of our six sessions. This first session will be an overview of the concept of libertarian paternalism and choice architecture.

Intelligence Intelligence is most widely studied in humans, but has also been observed in non-human animals and in plants. Artificial intelligence is the simulation of intelligence in machines. Within the discipline of psychology, various approaches to human intelligence have been adopted. The psychometric approach is especially familiar to the general public, as well as being the most researched and by far the most widely used in practical settings.[1] §History of the term[edit]

24 Quick Actions You Can Do Today That Can Change Your Financial Life Forever Note: This is a post from Adam Baker, founder of Man Vs. Debt. Last week, while I was talking about our new You Vs. Debt class, we touched on the “status quo” of our Upside-Down Nation. We talked about our obsession with the debt-fueled life path and how it’s keeping millions trapped.

Contagion effect Subprime Crisis Diagram Financial contagion refers to a scenario in which small shocks, which initially affect only a few financial institutions or a particular region of an economy, spread to the rest of financial sectors and other countries whose economies were previously healthy, in a manner similar to the transmission of a medical disease. Financial contagion happens at both the international level and the domestic level. International financial contagion, which happens in both advanced economies and developing economies, is the transmission of financial crisis across financial markets for direct or indirect economies. However, under today's financial system, with large volume of cash flow, such as hedge fund and cross-regional operation of large banks, financial contagion usually happens simultaneously both among domestic institutions and across countries. The cause of financial contagion usually is beyond the explanation of real economy, such as the bilateral trade volume.[2]

Nietzsche: Beyond Good and Evil A brilliant young man, he was appointed professor at the University of Basel aged 24 having not even finished his degree. His evanescent philosophical life ended 20 years later when he went insane and died shortly afterwards. Nietzsche's argued that the Christian system of faith and worship was not only incorrect, but harmful to society because it allowed the weak to rule the strong - it suppressed the will to power which was the driving force of human character. Nietzsche wanted people to throw of the shackles of our misguided Christian morality and become supermen - free and titanic. However, without God he felt that the future of man might spiral into a society of nihilism, devoid of any meaning; his aim was for man to realise the lack of divine purpose and create his own values. The core of Nietzsche's work, including Thus Spake Zarathustra (1883-92), Beyond Good and Evil (1886), The Birth of Tragedy (1872) was to find a meaning and morality in the absence of God.

Tapping our powers of persuasion Most psychologists will read this “Questionnaire” with Robert Cialdini, PhD. That may or may not be true, but according to Cialdini, that statement is powerfully persuasive because we tend to go along with our peers. Cialdini, who retired last year from a teaching and research position at Arizona State University in Tempe, Ariz., is a renowned expert in the science of swaying. In his seminal book on the topic, “Influence: The Psychology of Persuasion” (Quill, 1984), he went undercover to learn the tricks mastered by used-car dealers and Fortune 500 executives alike, bringing persuasion research to psychology’s forefront.

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