Behavioral economics & you
1. Introduction - Ancient stock and its relationship to your money
Introducing the lizard brain
In the time clock of human existence, the modern world we live in represents only a few minutes of our evolutionary day. The world in which our ancestors evolved was very different than the urban, wired landscape of today and those creatures relied on a whole series of mental shortcuts and rules of thumb to keep them alive and able to pass their genes along to their progeny. Our ancestral or lizard brain still powers many of these shortcut programs to this day and while our more recent modern brain can override it from time to time, its’ willpower lacks endurance... Continue Reading
2. Overconfidence bias
Overconfidence bias...or I'm surrounded by lousy drivers...
Of all the behavioral bias' that have been identified, this is one of the most prevalent. It has even been suggested as a root cause of some of the greatest human disasters, including financial crashes, medical mistakes and even wars. It’s often seen in company of its cousin, overoptimism bias... Continue Reading