Tag: behavioral economics
12 posts tagged "behavioral economics".
The study of how real human decisions systematically depart from the rational, self-interested agent of classical economics — shaped instead by cognitive biases, emotions, and context. Built on the work of Daniel Kahneman and popularised by researchers like Dan Ariely, it catalogues the predictable ways we misjudge probability, value, and our own future feelings. On this blog it underpins affective forecasting and the hedonic treadmill, and extends naturally to markets and money: because we are wired to chase performance and panic at the wrong moments, passive investing and resisting the urge to time the market are defences against our own psychology rather than claims to special insight — the same biases that inflate bubbles and manias, including in crypto. It sits in productive tension with the efficient markets hypothesis of Eugene Fama. Understanding the glitches in our own decision-making is, on this view, the first step toward rationality.
Posts:
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The ‘Bias’ Bias: No, Your Brain is Not Made of Swiss Cheese
Most apparent biases are, in fact, perfectly good heuristics, and people are far more rational than we have been led to believe.
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Kindly Stop Saying The Efficient Market Hypothesis is Dead
There are whispers that the efficient-market hypothesis is dead, or dying, or at least has a very nasty cough. But rumours of its death have been greatly exaggerated.
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How to Profit From Coronavirus
A black swan event unleashes destruction, but also opportunity. What would it take to not only weather this situation, but profit from it?
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The Best of the Best Books I Read in 2019
Of all the books I read this year - curated by Deep Dish readers and other people of impeccable taste - these are the cream of the crop.
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Quake Books That Shake Up Your Brain
Gray matter lurches and heaves, while my few remaining brain cells huddle under the kitchen table. When the tremors finally stop, nothing looks the same.
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The Best of the Best Books I Read in 2017
It’s been another self-indulgent year of funemployment, which means I’ve had time to read to my heart's content. Here's the best of the best.
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The Worst Investment Ever: How I Lost $10,000 Catching a Falling Knife
I stretched out my bandaged hand, and this time the knife took a finger off. I'm a slow learner when it comes to picking stocks, but you don't have to be.
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How a Billionaire Taught Me to Invest Using the Force
I didn't get to ask David Booth to weigh in on the Han vs Greedo controversy, but our conversation was still among the most life-changing I’ve ever had.
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The Best of the Best Books I Read in 2016
I knocked 65 books off my reading list this year. Most of them were great, but I've picked out the absolute crème de la crème to recommend to you.
Also mentioned in:
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If the Stock Market Crashed Today
The standard line is that market crashes just don’t matter a damn if you're a long-term investor. Today, I'm no longer so sure that's true.
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Is The Law of Attraction Real?
If you convince yourself the Law of Attraction is true, maybe it will improve your life. Placebos can be good medicine, even if you know they’re only sugar pills… right?
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100+ Money Saving Tips to Slash Your Spending
After many years as a personal finance columnist, I’ve distilled the very best articles into this collection of more than 100 money saving tips.
