Loss aversion: back to the theory!
Loss aversion and Prospect Theory Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses over acquiring gains of equal or even…
Loss aversion and Prospect Theory Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses over acquiring gains of equal or even…
What is the halo effect? The halo effect is a cognitive bias that involves the tendency of people to judge an individual or a product positively or negatively in multiple…
How to measure the impact of home bias. The well-known phenomenon of home bias in finance refers to the tendency of investors to prefer investments in domestic securities instead of…
What is the framing effect ? The framing effect is a cognitive bias that describes how people's decisions and choices are influenced by the way information is presented or "framed".…
Throughout this article we will discuss about how anchoring biases affects financial decisions. In addition we will give some tips that will allow you to avoid its limitations thanks to…
Key findings Decision-making, including in the financial sphere, is largely modulated by automatism and the unconscious. Neuroscience (and neurofinance) is essential for studying the stages of decision-making that affect the…
You want to invest in your favorite trading platform and have the option to choose 5 funds out of a long list of 100 funds. Each fund has a descriptive…
Our brain does not like randomness. Randomness is boring. We prefer nice stories. We have a new job promotion. We have kissed for the first time our new girlfriend. We…
As a Venture Capital investor, you need to select a company in which to invest out of 10. Your time is extremely limited. There are many criteria. You have just…
Research in psychology and organization has identified key attitudes and good practices which can help reduce cheating behaviors in organizations. Some of them are intuitive, such as putting transparent process…