Understanding behavioral finance
Understanding Behavioral Finance
Rationality & Decision Making
I hope you all had a very good holiday season. May 2011 bring you good health and heartfelt happiness.
We decided to start the year by sharing some Behavioral Economics experiments from Professor Ariely from MIT. Behavioral Economics explains how the process of decision making functions among common people. It elaborates on the role of emotions and vision.
Do you want to know more about Behavioral Finance, please click here!
Do you want to know how powerfully illusive our vision is and how it dominates our decisions? We use vision more in the day than we do anything else, so we are good at it. But the truth is that our vision tricks us. If we have these repeatable mistakes in vision which we are good at, what are the chances we don’t make more mistakes in that we are not good at, ex. financial decision making?
More on the economy in the articles below:
- Global Economics Weekly
- World Outlook, Two-track recovery
This newsletter was first published in January of 2011