What do these theories say about us as decision makers? What are their shortcomings?
Can behavioural science make us better investors? Andrew van Biljon and Lauren French offer their insights into the world of behavioural economics.
Further reading
Gigerenzer (2018), The Bias Bias in Behavioral Economics, Review of Behavioral Economics vol 5/3-4
Kahneman and Tversky (1979), Prospect Theory: An Analysis of Decision under Risk, Econometrica vol 47/2
Miller and Sanjurjo (2018), Momentum Isn’t Magic—Vindicating the Hot Hand with the Mathematics of Streaks
Peters (2019), The ergodicity problem in economics
Raviv, (2018) The Genius Neuroscientist Who Might Hold the Key to True AI
Nanayakkara, Nimal and Weerakoon (2019) Behavioural Asset Pricing: A Review, International Journal of Economics and Financial Issues vol 9/4
Choice (2020) What Lesson Can Investors Take from Sir Isaac Newton’s Mistakes?
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