...Journal of Economic Behavior & Organization 72 (2009) 147–152 Contents lists available at ScienceDirect Journal of Economic Behavior & Organization journal homepage: www.elsevier.com/locate/jebo Cognitive abilities and behavioral biases Jörg Oechssler a,∗ , Andreas Roider a , Patrick W. Schmitz b a b Department of Economics, University of Heidelberg, Bergheimer Str. 58, 69115 Heidelberg, Germany Department of Economics, University of Cologne, Germany a r t i c l e i n f o a b s t r a c t We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the cognitive reflection test of Frederick [Frederick, S., 2005. Cognitive reflection and decision-making. Journal of Economic Perspectives 19, 25–42] indeed are correlated with lower incidences of the conjunction fallacy and conservatism in updating probabilities. Test scores are also significantly related to subjects’ time and risk preferences. Test scores have no influence on the amount of anchoring, although there is evidence of anchoring among all subjects. Even if incidences of most biases are lower for people with higher cognitive abilities, they still remain substantial. © 2009 Elsevier B.V. All rights reserved. Article history: Received 19 May 2008 Received in revised form 15 April 2009 Accepted 15 April 2009 Available online...
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...Jason Drago Professor Bhargave Marketing 4093 24 February 2015 Thinking Fast and Slow Thinking Fast and Slow is a book written by Daniel Kahneman. The book contains over 40 years of his and his colleague’s research on the human mind and the way humans make judgments and decisions. Kahneman makes the book very intriguing by applying his experimental findings to his concepts throughout the book. His hope for the readers of this book is that they will be able to recognize when our brain tries to act irrational, and gives steps to take to try and make rational decisions. The book begins with an introduction on the work between Daniel Kahneman and his good friend Ramos Tversky. The two began to work together in 1969 and wrote an article on intuitive statistics. It was then that they realized that they really enjoyed each others company and that together, they were capable of discovering things that each on there own could not achieve. This is what led them to continue to work together for fourteen years. Throughout the fourteen years, the pair wrote many articles with their two greatest works being, “Judgment Under Uncertainty: Heuristics and Biases” and “Prospect Theory: An Analysis of Decision Under Risk.” These two works became very influential to many in the field of research in judgment, decision-making and behavioral economics. Kahneman went on to win the Nobel Prize in 2002 for his and Amos’ work on judgment, decision making, and prospect theory, but he says that...
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...Jönköping International Business School Jönköping University B eh avioral F i nance Investors’ Rationality Bachelor Thesis within Finance Authors: Bernéus, Hannes Sandberg, Carl Wahlbeck, David Tutor: Jönköping Österlund, Urban December, 2008 Acknowledgement We would like to thank our tutor Mr. Urban Österlund for his support and guidance. We are also grateful for all valuable comments and insights from our fellow students during seminar sessions. We would also like to present a special thanks to Johan Sandberg at Swedbank Robur and Viktor Östebo at Nordnet. Without Mr. Sandberg’s and Mr. Östebo’s contribution, this thesis would not have been possible to complete. To all the respondents: thank you for your participation! _____________ Hannes Bernéus ____________ Carl Sandberg Jönköping International Business School Date: 2008-12-11 i _____________ David Wahlbeck Bachelor Thesis within Business Administration Title: Authors: Tutor: Date: Subject terms: Behavioral Finance – Investors’ Rationality. Hannes Bernéus, Carl Sandberg, David Wahlbeck Urban Österlund 2008-12-02 Behavioral Finance, Behavioral Economics, Finance, Economic Psychology. Abstract Purpose: The purpose of this thesis is to examine if professional investors are indicating tendencies of irrational behavior when exposed to certain psychological dilemmas related to the financial world. Background: A new field within financial theory emerged...
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...the Copyright 646-8600, or on the web at www.copyright.com. Requests to the Publisher for pennis River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.comlgo/pennissions. Limit ofLiabilirylDisclaimer ofWarranry:While the publisher and the author have used their best efforts in preparing this book., they make no representations or warranties with respect to the accuracy or completeness of the contents of this hook and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your siruarion. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental,...
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...In memory of Amos Tversky Contents Introduction Part I. Two Systems 1. The Characters of the Story 2. Attention and Effort 3. The Lazy Controller 4. The Associative Machine 5. Cognitive Ease 6. Norms, Surprises, and Causes 7. A Machine for Jumping to Conclusions 8. How Judgments Happen 9. Answering an Easier Question Part II. Heuristics and Biases 10. The Law of Small Numbers 11. Anchors 12. The Science of Availability 13. Availability, Emotion, and Risk 14. Tom W’s Specialty 15. Linda: Less is More 16. Causes Trump Statistics 17. Regression to the Mean 18. Taming Intuitive Predictions Part III. Overconfidence 19. The Illusion of Understanding 20. The Illusion of Validity 21. Intuitions Vs. Formulas 22. Expert Intuition: When Can We Trust It? 23. The Outside View 24. The Engine of Capitalism Part IV. Choices 25. Bernoulli’s Errors 26. Prospect Theory 27. The Endowment Effect 28. Bad Events 29. The Fourfold Pattern 30. Rare Events 31. Risk Policies 32. Keeping Score 33. Reversals 34. Frames and Reality Part V. Two Selves 35. Two Selves 36. Life as a Story 37. Experienced Well-Being 38. Thinking About Life Conclusions Appendix Uncertainty A: Judgment Under Appendix B: Choices, Values, and Frames Acknowledgments Notes Index Introduction Every author, I suppose, has in mind a setting in which readers of his or her work could benefit from having read it. Mine is the proverbial office watercooler, where opinions are shared and gossip is exchanged. I...
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...animal host that acts as a reservoir of infection for a particular geographic area. Although all warm -blooded vertebrates are susceptible, only mammals are important in the spread of rabies. In British Columbia, bats are the only reservoir of rabies. Records of bats submitted for rabies testing suggest that relatively few are infected, even among those submitted because they are behaving abnormally. Bats are valuable components of the natural ecosystem and many species are at risk in British Columbia. Other potential hosts of British Columbia include domestic dogs/cats, foxes, raccoons, skunks, wolves and coyotes. " Spill over " of rabies to terrestial mammals from bats has occurred in British Columbia, but rabies has never been maintained in wild populations of terrestrial mammals. Rabies should be suspected in any wild animal exhibiting any behavior considered " abnormal" including ; loss of fear or unusual friendliness, excitation or aggression, depression, incoordination, paralysis, convulsions or seizures, abnormal vocalizations, appearance of nocturnal creatures during the day, signs of choking or inability to drink or swallow food, drooling of saliva or frothing at the mouth. In Carnivores, evidence of having attacking prcupines. Bats, unlike mammals with rabies, may get sick and die before being observed or showing symptons typically found in other mammals Intact brain tissue is the key diagnotic tool in confirming rabies infection. If an animal...
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...One bitter night, in the rough end of New Haven, the heartful dodger by any standards, but it hit Ferraro like an uppercut. He was unable to continue the beating. That exchange on a wintry night in 1982 is one that Ferraro continues to relive. But these days, as the Teacher Training Director of the Mind Body Awareness Project, it’s Ferraro who is looking into angry young eyes until he finds a glimpse of compassion. Based in Oakland, California, the MBA Project is a nonprofit organization that uses mindfulness and emotionalintelligence exercises to equip disadvantaged and underserved youth with the tools to make better decisions and to consider more skillful options than violence, self-harm, drugs, and crime. “All my work revolves around the same conversation,” says Ferraro. “What is freedom beyond conditions? Beyond this school, this prison, this hood, whatever your conditions are. Do your conditions lead inevitably to suffering? No, they don’t. Only a being’s perspective leads to suffering. Two people in the exact same situation, according to their outlook and expectations, can have completely different experiences. Turn that around, and any conditions can be a vehicle for bondage—or freedom and awakening. And that’s fucking deep, man.” Going back to his story about the homeless man, Ferraro says, “I didn’t know what compassion meant when I was fifteen. But I knew that that homeless guy had seen my heart. And that was scary. I’d learned early on that this heart of mine was...
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...The Origin of the Vampire Vampires, are they a mythical creature that was created by superstition and folklore or did they begin from someone’s fantastic imagination based on a real live person? Or maybe it was created to explain a cluster of misunderstood medical conditions that began before the medical world had advanced science and knowledge on the body and its psyche. It’s a word that inspires awe, fear, and romanticism all at once. Vampires are known in every culture and have been kept alive through stories that have been told throughout the generations. When someone utters the word “vampire” most people’s mind jump to Dracula from the great love story written by Bram Stoker. Dracula was created because Stoker was inspired by a real live man, the infamous, Vlad Tepes from Romania. That story is where love and vampires were intertwined and a kind of admiration was born. Only till recently they have become these seductive beautiful men and women in movies like ‘Twilight’ and ‘The Lost Boys’. So we are going to embark on the journey of where vampires began and explore the different aspects and origins of vampires. How these creatures were created was recorded in European folklore, Greek Mythology, found in medical conditions, and even taken from an excluded book of the bible. What is a vampire? Where did they come from? Well to get some answers we must first start at the beginning. First we must look at the word vampire. It is also spelled “vampir” or “vampyre”...
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...CAT Reading Comprehension CAT Study Materials Reading Comprehension Sample Questions Directions: Each reading passage in this section is followed by questions based on the content of the reading passage. Read the passage carefully and chose the best answer to each question. The questions are to be answered on the basis of what is stated or implied in the passage. 1. But man is not destined to vanish. He can be killed, but he cannot be destroyed, because his soul is deathless and his spirit is irrepressible. Therefore, though the situation seems dark in the context of the confrontation between the superpowers, the silver lining is provided by amazing phenomenon that the very nations which have spent incalculable resources and energy for the production of deadly weapons are desperately trying to find out how they might never be used. They threaten each other, intimidate each other and go to the brink, but before the total hour arrives they withdraw from the brink. 2. 1. The main point from the author's view is that A. Man's soul and spirit can not be destroyed by superpowers. B. Man's destiny is not fully clear or visible. C. Man's soul and spirit are immortal. D. Man's safety is assured by the delicate balance of power in E. terms of nuclear weapons. Human society will survive despite the serious threat of total annihilation. Ans : E 2. The phrase 'Go to the brink' in the passage means A. Retreating from extreme danger. B. Declare war on each other. C. Advancing...
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...\nvt'$ mvmj of thf "i'emW^ le$t ^mH, THE DISCOURSES OF EPICTETUS. WITH THE ENCHEIRIDION AND FRAGMENTS. TRANSLATED, AND A WITH VIEW NOTES, OF HIS A LIFE OF EPICTETUS, PUILO80PUY. By GEOKGE long, M.A. NEW YORK: A. L. BURT, PUBLISHER, EPICTETUS. Very that he little was a is known* native of and of the life of in Epictetus. Phrygia, the in Maeander the a it is saia Hierapolis, a town tween be- the the to Mgeander branch of named of Paul it in the of Lyons. the Hierapolis of Colossi that time is mentioned epistle from people (Coloss. there of the was iv. a 13); which church date of fact his master has been concluded at Christian The Hierapolis birth of the apostie. The Epictetus life is that is unknown. he a was a only Rome, recorded and of broke the his was early slave in Epaphroditus, There is a profligate that the freedman master to on emperor his slave's dence evi- Nero, story leg by torturing of or him; but the that it is better trust to the Simplicins, who an commentator the weak how Encheiridion in he Manual, from but says Epictetus It is not in was body became that found and a lame early age. said modern slave; parents it has the this ...
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...does. Adam will tell us more about some of their unique approaches to business. Adam Lashinsky is a senior editor at large for Fortune Magazine, where he covers technology and finance. He is also a frequent speaker and Fox News contributor. Prior to joining Fortune Lashinsky was columnist for the street.com and the San Jose Mercury News. Please join me in welcoming Adam Lashinsky. [applause]. >> Adam Lashinsky: Thank you very much. It's really wonderful to be here. I want to tell you straight off the bat that I'm doing this presentation on Power Point and running off of PC. A dirty little secret that I've been waiting to reveal until I got here is that I wrote the book on a PC in Word. So thank you. Thank you very much. I have to get some things off my screen. There we go. And one other sort of opening comment is that I know that a lot of people when they begin a talk ask people to turn off their telephones or to close their laptops. I would like you to do just the opposite. I'm assuming that if you are looking at your phone or your laptop that you're either tweeting or on Facebook. I'm Adam Lashinsky on Twitter and Adam Lashinsky also on Facebook. And you're more than welcome to comment on what I'm saying. So and one last very important caveat. I have spent more than the last year researching Apple. And there are, in fact, in my book some comments comparing Apple and Microsoft from people who...
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...Journal for Critical Animal Studies, Volume 10, Issue 2, 2012 (ISSN1948-352X) Beyond Dehumanization: A Post-Humanist Critique of Solitary Confinement Lisa Guenther Abstract What does it mean to be treated like a nonhuman animal? In this paper, I analyze the discourse of “dehumanization” in Madrid v Gomez, a 1995 Eighth Amendment case concerning the treatment of prisoners at California’s Pelican Bay Supermax Penitentiary. I argue that the language of dehumanization fails to describe the harm of solitary confinement because it remains complicit with a hierarchical opposition between human and nonhuman animal that rebounds against prisoners, especially those who have been racialized and/or sexualized as less than human. Humanist discourse neglects the sense in which both human and nonhuman animals are affective, corporeal beings who rely upon the support of others for their own capacity to orient themselves within a mutually-perceived world. Drawing on the testimony of inmates in solitary confinement, and situating this testimony in relation to the political and scientific history of US incarceration practices, I develop a post-humanist critique of solitary confinement. Keywords: Solitary confinement, sensory deprivation, intercorporeal Malebranche would not have beaten a stone as he beat his dog, saying that the dog didn’t suffer. Merleau-Ponty, Nature, 166 Certain carceral practices are often condemned – both by prisoners and by their legal or political advocates –...
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...THE STUDENT'S PRACTICAL DICTIONARY ; fNdkoq ; CONTAINING English words with English and Hindi Meanings and Pronunciation in Deva Nagri Character with an Appendix containing Familiar Foreign Words and Phrases and Abbreviations in Common use. FIFTEENTH EDITION Thoroughly Revised,Improved,Enlarged and Illustrated PRICE 3 RUPESS ALLAHABAD RAM NARAIN LAL PUBLISHER AND BOOKSELLER 1936 ISCII text of dictionary taken from from TDIL's ftp: anu.tdil.gov.in pub dict site I N 1.m I Pron 1.m a Det 1.ek, abatement N abbey N 1.kmF, GVtF, GVAv, mdApn, b A, 2. yAg, smAE ag jF vZmAlA kA Tm a"r tTA -vr, 2. tk m phlA kESpt pzq vA -tAv , aback Adv 1.acAnk, ekAek, 2.pFC abandon VT 1.CoX nA, yAg nA, yAgnA, tjnA, d d 2.EbnA aAj^ nA nOkrF CoXnA, apn ko drAcAr aAEd m CoX nA, d , nA d d abandoned A 1.CoXA h,aA, Enjn -TAn , 2.EbgXA h,aA, iEdy lolp, lMpV, drAcArF, aAvArA , , abandonment N 1.pZ yAg, sMpZ aA mo sg, EbSkl CoX nA d , abate VI 1.km honA, GVnA, DFmA honA abate VT 1.km krnA, GVAnA, DFmA krnA, m@ym krnA, rok nA, smA krnA d 1 1.IsAiyo kA mW, gz\ArA, kVF, mW, , , 2.mht aADFn sADao kF mXlF k , abbot N 1.mht, mWDArF, mWAEDkArF abbreviate VT 1.km krnA, s" krnA, CoVA krnA, p sAr EnkAlnA abbreviation N 1.s" , GVAv, sAr, lG,!p, skt, p 2.sE" pd yAf, fNd yA pd kA lG!p ^ , abdicate VTI 1.-vQCA s CoXnA, yAg krnA, tjnA, pd yAg krnA abdication N 1.pd yAg abdomen N 1.X, V, k"F, udr p p , abdominal A 1.udr sMbDF, V kA p abduct VI 1.BgA l jAnA, EnkAl l...
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...Anthropology Lecture 1 introduction Common Misconceptions with Drugs . The effect of a drug is caused solely by its pharmacological properties and effects. . Some drugs are instantly addictive . The gateway/ stepping stone theory - the use of 1 drug leads to the use of other more dangerous drugs What are drugs ? Krivanek's definition : Drugs are substances that are introduced into the body knowingly but not as food. Therefore illicit drugs, legal recreational drugs and legal but regulated pharmaceutical drugs that aren't recreational at all. - Whether if a drug is considered bad and is prohibited depends on the culture of the society in a particular period. What is culture ? The definition of culture = Through Roger keesing and Andrew Strathern's definition it is a system of shared ideas, rules and meanings that underlie and are expressed in the ways that human live. - This includes : law, beliefs, political economy, media and popular culture - this perceives ideas about what is normal and abnormal to society. " Culture is always changing and contested, not unified" Enthography as a method for studying drug use It is a process of observing, recoding and describing other peoples way of life through intimate participation the community being studied". - Participation observation, involving yourself in the life of the community , taking up the life of the other person, observing their actions, asking questions and learning what questions...
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...Twilight (series) |Twilight | |[pic] | |Complete set of the four books | |of the Twilight series and the spin-off novella, The Short Second Life of Bree| |Tanner. | |Twilight | |New Moon | |Eclipse | |Breaking Dawn | |Author |Stephenie Meyer | |Country |United States | |Language |English | |Genre |Romance, fantasy, young-adult fiction | |Publisher |Little, Brown and Company | |Published |2005–2008 | |Media type |Print | Twilight is a series of four vampire-themed fantasy romance novels by American author Stephenie Meyer. It charts a period in the life of Isabella "Bella" Swan, a teenage girl...
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