Behavioural finance is often associated with looking for instances of overconfidence. Most examples show that human beings are too pessimistic or optimistic, or simply understate the chance that we will be surprised. But sometimes we can also observe instances when confidence is unusually low. This is what I believe we… Read the article
Month: July 2015
The way information is presented to us influences how we think about it.
This idea is known in behavioural finance as ‘framing’, and like many lessons from behavioural finance, can be filed under the heading of ‘stating the obvious.’ But it is so obvious that we forget it, particularly when… Read the article