Category: Behavioral Economics

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Loss Aversion: A Youtube Clip

This is worth watching (and here’s the link for the subscribers). For more on loss aversion, check out these older posts: The Problem With Prepaid Tickets How Ryanair Makes Money Off Delusions In A Manner Of Speaking… PS: thanks to my friend Werner for pointing me in the direction of the video. Rolling Alpha posts […]

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Cognitive Biases. Or 5 of them.

After yesterday’s mammoth post (Number 900, and it was all about Big Business and Big Economics), I thought I’d share something more visual. Here it is: Happy Wednesday Rolling Alpha posts opinions on finance, economics, and the corporate life in general. Follow me on Twitter @RollingAlpha, and on Facebook at www.facebook.com/rollingalpha.

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The (Honest) Truth About Dishonesty

I’m a big Dan Ariely fan. I’m also running a bit short on time this morning. So in lieu of a longwinded post, I’d like to direct your attention to this youtube clip of Dan talking about one of his more recent books (and here is the link for the subscribers: RSA Animate – The Truth […]

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Psychopaths, Sociopaths, Economists?

Yesterday, I started talking about Ayn Rand. Specifically, I may have called her a psychopath. And I wanted to talk a bit more about that. What Makes A Psychopath*? *Psychopath and Sociopath are often used interchangeably – although sometimes, they are used to distinguish whether the source of the condition is nature (psychopathy) or nurture (sociopathy). […]

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The Economics of Online Dating: Go Fishing In A Supermarket

In my circles of twenty-somethings, the world of internet dating is still considered a last-ditch desperado attempt to find someone willing to put up with you and your weird obsession with fridge magnets and/or origami and/or whatever. There is stigma and judgment and sanctimonious holier-than-thou. Which I find confusing, because online-dating makes so much sense. […]

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Shopping: You’re Doing It Wrong

It’s Black Friday in America. And in some other places. On Monday, it will be Cyber Monday. The stores are already bedecked with their bargain and LOW PRICE and flashy “Only 2 per customer” signs. I have no doubt that the queuing has already begun. Here’s a fun fact: the reason it’s called “Black” Friday is because […]

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The Investor Sentiment Saga. And being part of the herd.

I found this: Which I feel ties in quite nicely to yesterday’s post. So the thing is: we know this. As in: everyone knows this. This is not new. It is not news. We’re generally aware of the fact that market bubbles are not the time to buy – because that’s when everyone is buying. […]

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The Economics of Spite, and Nose-Cutting

The origin of the phrase “cutting off your nose to spite your face” is (ironically) found in the lives of the saints. Specifically: ancient Christian nuns. And in particular: St Ebba the Younger of Coldingham. St Ebba was the abbess of a convent during the 9th Century, when England was frequently attacked by barbarians (Danish pirates AKA […]

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Why Do We Still Get Emails From Nigeria?

We’re all familiar with the Nigerian bank-employee/government-minister/lawyer that has found you on the internet and identified you as the long-lost only surviving relative of some poor deceased cocoa lord with an heirless fortune that you can claim, if you’ll just contact the sender on <prepaid cellphone number>. And pay a little something to secure your […]

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Office Politics: And Cornered Animals

Today, I want to talk about Prospect Theory. I’ve been hinting at it around the edges, talking about loss aversion and general craziness, but I think it’s time. “Prospect Theory” is the fancy name for the life epiphany that Daniel Kahneman and Amos Tversky mutually experienced while going for long walks through the side-streets of […]

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