Daniel Kahneman
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Michael Mauboussin on the ‘Success Equation’
… Mauboussin: That’s a really interesting [question]. One of the frameworks I like [to use] is going back to the Daniel Kahneman -Amos Tversky idea of inside versus outside view. You’re very familiar with that. The inside view says that when we’re trying to solve a problem or tackle something, the typical way that we do it — and this is where overconfidence …
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Is Loss Aversion Causing Investors to Shun Equities?
… financial markets. One of the key findings in behavioral economics is loss aversion, a bias revealed by psychologists Daniel Kahneman and Amos Tversky. In studies of human decision making, they discovered that the pain people feel from a loss is about …
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The Harm of Mental Shortcuts
… examples of this experience-based (also known as heuristic ) decision-making. According to Amos Tversky and Daniel Kahneman ’s research, the more complex the decision, the more we tend to take a heuristic approach that results in inappropriately …
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Systematic Approach Can Blunt Behavioral Biases… want to look into it a little, and it is a little bit more ad hoc than I think people would generally recommend. Daniel Kahneman has been a big proponent of this. He has been on the speaking circuit talking about this lately, and I think being …
little bit more ad hoc than I think people would generally recommend. Daniel Kahneman has been a big proponent of this. He has been on the speaking circuit talking about this lately, and I think being -
Counter-Trend Trading
… 1960’s and 70’s, Dr. Amos Tversky and Dr. Daniel Kahneman were awarded the Nobel Memorial Prize in Economics for their work in Prospect Theory, which began by studying the irrationality of human risk aversion13 ..... analysis of decisions under risk,” Amos Tversky and Daniel Kahneman , 1979. 14 Market Volatility, Robert J. Shiller …
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Unmasking the Asian Giant
… invest. However, we need to be aware of how outside biases can influence our judgment. In Thinking, Fast and Slow, Daniel Kahneman writes about a mechanism through which biases flow called an “availability cascade,” a term coined by Cass Sunstein …
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RIM: The 'Is' And 'Is Not' Of QNX
By K.H. : Anyone who has read Daniel Kahneman 's Thinking, Fast and Slow should remember his little tale about Ford Motor ( F ). He visited the chief investment officer of …
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Learn To Embrace Losing And You Will Make More Money
… continue to lose as long as I trade stocks and options. Embracing loss is not as easy as I write it out to be though. Daniel Kahneman , a Princeton professor, studied the intellectual patterns of investors. In one of his studies, he determined that …
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Dividends: A Case of Behavioral Heuristics?
… evaluate dividends from the perspective of heuristics as the term is used by Gerd Gigerenzer, on the one hand, and Daniel Kahneman , on the other. Gigerenzer uses the term to describe a useful shorthand in situations where full knowledge is simply …