MiFID 2 and the suitability test: how European regulation incorporates ESG preferences
Asking investors about their ESG preferences will soon become part of the routine for financial advisors.
Cognitive bias: Gambler’s Fallacy
You need to recruit a junior manager for your retail department. You know that a lot of people are qualified for this job, equally men and women. Today, you are supposed to…
Cognitive Bias: Conjunction Fallacy
We work in an international import/export firm with an extremely large distribution of our products worldwide. We have just received
Cognitive Bias: The law of small numbers
A study carried out by an eminent institution in a poor, tropical country reveals that 20% of the inhabitants of a small rural village have a psychological disease, whose average…
Cognitive Bias: Simultaneous vs. Sequential Choice
Cognitive Bias: Simultaneous vs. Sequential Choice
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 that a person found to have a positive…
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
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 with a 50% of chance of earning €1M…
Cognitive Bias: Anchoring effect
You have to hire one candidate among two for a given position. You look at the reports of the HR interviews and find the following key conclusions of the reports. Sophie: smart-kind-pretty-genereous-careless-messy-lazy…
How to assess client’s ESG preferences ?
Climate change, the health crisis and corporate governance concerns have increased awareness regarding the limits of our traditional economic model. People are now looking to have a positive impact on…