People don’t evaluate government policies through mathematical models or with long-term goals in mind.
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Treasury modelling suggests that limiting negative gearing will lead to small change in prices. But behavioural economics shows it all depends on how the policy is framed.
Tennis is one of the most unequal professional sports.
Only a few professional tennis players make a stable income, let alone vast riches. Research suggests it's this small chance of a huge payoff that drives players to play professionally
As a founder of behavioral economics, Thaler has helped change the way economists look at the world.
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Richard Thaler won the 2017 Nobel Prize in economics for his groundbreaking work incorporating how humans actually behave into economic thinking.
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Almost half of Americans have trouble saving, while average credit card balances have swelled to $6,000. Can we turn this around?
Humans are irrational. Superheroes also.
Let's face facts. Behavioural finance shows you are not to be trusted with your retirement planning.
Two theories - efficient markets and behavioural finance - attempt to explain how our sharemarkets work.
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Do our share prices effect the wisdom of crowds, or the madness of crowds? It's the perennial economic debate.
Experimenting with bubbles.
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Some shares have new owners every second. Today much of the buying and selling is done by computers, but some still rely…
With stock markets close to record highs, should we be running for cover?
The FTSE 100 reached 6877.39 points last week. It was the highest since its all-time peak of 6950.60 on December 30 1999 before the start of the deflation of the great dotcom bubble in January 2000. It…
A young girl attempts to destroy the world economy.
Five years on from Lehman Brothers’ collapse and “where did it all go wrong?” analysis is all the rage. Answers have varied…
Irrational decision-making can have significant consequences for financial markets.
Fred Tomczyk, a 20-year veteran of the financial services industry, has his finger on the pulse of investor sentiment: “ … the preference for cash that we’re seeing among new investors suggests a stronger…
London trader Alessio Rastani has told the BBC he “dreamed” of recession. But traders often don’t know how they’ll react to losses.
Trading in financial securities has sometimes been regarded as a “black box”. This is particularly the case in markets where there is increased uncertainty. The current world economy is a prime candidate…