Behavioural Finance Martin Sewell University of Cambridge February 2007 (revised April 2010) Abstract An introduction to behavioural finance‚ including a review of the major works and a summary of important heuristics. 1 Introduction Behavioural finance is the study of the influence of psychology on the behaviour of financial practitioners and the subsequent effect on markets. Behavioural finance is of interest because it helps explain why and how markets might be inefficient. For more information
Premium Decision theory
Chapter 5 Perception and Individual Decision Making MULTIPLE CHOICE What Is Perception and Why Is It Important? 1. A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment is called: a. interpretation. b. environmental analysis. c. perception. d. outlook. (c; Easy; p. 123) Factors Influencing Perception 2. What one perceives _______ objective reality. a. is always the same
Premium Decision making
The Dark Side of Social Cognition: The Availability Heuristic‚ Self-Fulfilling Prophecies‚ and Expectancy-Congruent Memory in Relation to Social Stereotyping Throughout history‚ the topic of how we think about others has been the subject of much attention by psychologists‚ philosophers‚ theologians‚ historians‚ and laypeople alike. Despite our best efforts in recent decades to create a diverse‚ egalitarian society‚ stereotypes still haunt every corner of American life. Though many
Premium Psychology Stereotype Sociology
operations‚ programming practices for practical purposes‚ are moving away from the data centric‚ procedural problem solving paradigm to a heuristic‚ declarative problem solving paradigm. Though theoretically there is no guarantee that a solution shall be found and even if it is found‚ that it be correct‚ practically it has been proven that expert systems employing ‚ heuristics are indeed a faster and more effective manner of problem solving ‚ with an added advantage of having an explanation for the answer
Premium Expert system Artificial intelligence
want to try it to gain or maintain a pretty face like Jessica. The author of this Proactiv ad with Jessica Simpson was intended to take a peripheral route of persuasion. Through ‘intuitive processing’ requires little thought and rely on judgmental heuristics. Source factors are the most evident feature of peripheral route of persuasion being used in this ad. Proactiv uses a celebrity to promote their product creating a likeable attitude towards the product; also people will see this product attractive
Premium Proactiv Solution Physical attractiveness Social psychology
Howard and James E. Matheson‚ editors‚ The Principles and Applications of Decision Analysis‚ pages 719– 762. Strategic Decisions Group‚ Menlo Park‚ CA‚ 1984. [16] Daniel Kahneman‚ Paul Slovic‚ and Amos Tversky‚ editors. Judgment Under Uncertainty: Heuristics and Biases. Cambridge University Press‚ Cambridge‚ 1982. [17] Paul E. Lehner‚ Theresa M. Mullin‚ and Marvin S. Cohen. A probability analysis of the usefulness of decision aids. In M. Henrion‚ R.D. Shachter‚ L.N. Kanal‚ and J.F. Lemmer‚ editors‚
Premium Decision theory Decision making
Although the nature of stereotypes are not essentially negative it has been found that stereotypes of out-group members are more likely to be negative than those of in-group members (Castelli et al. 2005; Perdue‚ Dovidio‚ Gurtman & Tyler‚ 1990). Despite this fact‚ engaging in stereotyping still occurs. In order to adequately understand why we continue to use stereotypes‚ when we know of the negativity that can be attached to them‚ several areas need to be considered. Firstly‚ in the context of this
Premium Social psychology Stereotype Psychology
Social cognition is the study of how people form attribution or judgments about themselves and the social world from the social information they received from their environment (Chapter Review‚ 2010). However‚ it was discovered often marked by apparent errors and biases. People make quick judgment based on their past experiences‚ hence at times leading to tragic endings. The Amadou Diallo case study was an example of the tragic error which was made by four New York City Police officers. The police
Premium Crime Attribution theory Police
Introduction The many decision making models that exist nowadays means that you even have to make a decision as to which one to use! There are rational models‚ intuitive models‚ rational-iterative models as well as 5‚ 6‚ 7 and even 9 step decision models. Most‚ however‚ move through each of the basic stages in decision making On this page we will quickly scan over the main points of some of these decision models so that you have a sense of what ’s available. Some of these decision making models
Premium Decision making
EXPERT SYSTEMS AND ARTIFICIAL INTELLIGENCE Expert Systems are computer programs that are derived from a branch of computer science research called Artificial Intelligence (AI). AI’s scientific goal is to understand intelligence by building computer programs that exhibit intelligent behavior. It is concerned with the concepts and methods of symbolic inference‚ or reasoning‚ by a computer‚ and how the knowledge used to make those inferences will be represented inside the machine. Of course‚ the
Premium Expert system Artificial intelligence