Browsing Tag

psychology

Peer pressure and bubbles

What has the housing bubble told us about market efficiency, social psychology and economics? Quite a lot, I believe.In the aftermath of the housing bubble, one thing is for certain: we can throw out the inane "Efficient Market…

Vision, Tactics, and Stubbornness

Judgment or Experience?Many American citizens claim our President needs a strategy and a vision for the future. The most common complaints are about a lack of vision on the economy, health care and in our response to terrorism and the war…

Personality type may decide elections

Voters in America are concrete, specific, and focused on the here and now by a margin of 3 to 1. To me, this has a real impact on the outcome of primary and Presidential races as candidates must speak in a way that resonates with those…

Cognitive dissonance

In psychology, cognitive dissonance is an uncomfortable feeling or stress caused by holding two contradictory ideas simultaneously. The theory of cognitive dissonance proposes that people have a fundamental cognitive drive to reduce this…

Loss aversion and finding a bottom

About five years ago, Daniel Kahnemann won the Nobel Prize in Economics for his work on Behavioral Economics. This was a breakthrough because the financial markets and the economics profession had been dominated by the "efficient market,"…

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