The book that applies behavioral finance to the real world Understanding how to use behavioral finance theory in investing is a hot topic these days. Nobel laureate Daniel Kahneman has described financial advising as a prescriptive activity whose main objective should be to guide investors to make decisions that serve their best interests. 50 more words
Tags » Biases
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Our decision-making is biased, but an even bigger limitation is that it is noisy. So what?
The loudest and longest standing criticism of neoclassical economics is that it assumes us meatbags are rational, self-interested, utility maximizing individuals, while in reality we’re subject to a raft of biases and fallacies. 1,084 more words