Bias In Action
PsyFi Search Monday 12 February 2018 Bias In Action Myopic Urges The recent sharp correction in markets has clearly surprised a lot of investors. No doubt this is partly due to the standard myopia people seem to exhibit as soon as the last crash is out of sight, but it also seems to be connected […]
When Comfort Blankets Go Bad: Risk, Perception and Investing Theater
PsyFi Search Monday, 1 February 2016 When Comfort Blankets Go Bad: Risk, Perception and Investing Theater Investing as Performance Art The security analyst Bruce Schneier describes many of the security measures on public display as “security theater”: a meaningless set of rituals designed to provide a comfort blanket. He argues that these measures provide no […]
A Tall Tale of Risk Aversion
PsyFi Search Thursday, 12 July 2012 A Tall Tale of Risk Aversion Dead or Alive, It’s all the Same Amos Tversky’s and Daniel Kahneman’s 1981 paper on The Framing of Decisions and the Psychology of Choice demonstrated that people are risk averse in situations involving potential gains and risk takers in situations involving potential losses. The […]