Articles

Cognitive Bias: Simultaneous vs. Sequential Choice

Cognitive Bias: Simultaneous vs. Sequential Choice

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Cognitive Bias: Familiarity Bias

Do you prefer to bet on the decrease of the Dow Jones or the CAC40 on the first of next September? These

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Cognitive Bias: Base Rate Fallacy

If a test to detect a disease whose prevalence is 1/1000 has a false positive rate of 5%, what is the chance

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Cognitive Bias: The framing effect

You are the head of an industrial company operating 600 plants with severe economic problems. After discussion with your strategic

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Cognitive Bias: Syllogism

Diversified portfolios have lower risk. Some low-risk portfolios are constituted of Treasury Securities. Therefore, some diversified portfolios

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Behavioral finance, risk profiling and Prospect Theory

Prospect Theory is one of the most famous behavioral finance theory. It describes how investors make decision under risk. A short insight

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Cognitive Bias: Ambiguity aversion

As an investor, you have three investment options for the next semester: You get €500.000 for sure You invest in a stock

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Cognitive Bias: The Cognitive Zoo

The tendency to avoid options for which missing information makes the probability seem “unknown.”

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