Behavioral Bias Bingo — The Whimsical Cuteness Effect
"So Cute I Could Eat it Up": Priming Effects of Cute Products on Indulgent Consumption Nenkov and Scott A version of the paper can be [...]
Behavioral Bias Bingo — False-Consensus Bias
I Believe...Why Don't You? To believe your own thought, to believe that what is true for you in your private heart, is true for all [...]
Surprising Facts on Post-Earnings Announcement Drift
Recency Bias and Post-Earnings Announcement Drift Qingzhong Ma, David Whidbee, and Wei Zhang A version of the paper can be found here. Want a summary of [...]
Behavioral Bias Bingo — Availability Heuristic
If you can recall something, you think it's important From 1990 through 2000 there were 1.4 deaths per 10 million passengers on U.S. scheduled airlines. [...]
Behavioral Bias Bingo — Mental Accounting
Mental Accounting and Your Money "Mr. and Mrs. L and Mr. and Mrs. H went on a fishing trip in the northwest and caught some [...]
Behavioral Bias Bingo — The Illusion of Control
The Illusion of Control In most elevators, at least in any built or installed since the early nineties, the door-close button doesn’t work. It is there [...]
Forecasting Bias: From Weather to Wall Street
Providers of forecasts often want to be right, but they also don’t enjoy surprising people on the downside. People don’t like nasty surprises. For instance, [...]
Do Behavioral Biases affect PGA Tour players?
Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes Pope and Schweitzer A version of the paper can [...]
Time to Trade in Your Doctor for an Algo?
Artificial intelligence in the diagnosis of low-back pain and sciatica Mathew, B., Norris, D., Hendry, D., & Waddell, G. Spine, 13, 168-172 An online version [...]
Behavioral Bias Bingo: Confirmation Bias
Confirmation bias leads to the selective use of information It is easy to obtain confirmations, or verifications, for nearly every theory - if we look [...]
Behavioral Bias Bingo: Decoy Effect
“When my information changes, I alter my conclusions. What do you do, sir?” - John Maynard Keynes How does the Decoy Effect work? Here is [...]
Behavioral Bias Bingo: Trophy Effect
Hard work ≠ Value "Imagine you play in a tennis tournament at your local club. As your opponents are of the same strength as you, [...]
Predicting Mental Defects: Does the Model or the Expert Win?
Clinical intuition and test scores as a basis for diagnosis Klehr, R. Journal of Consulting Psychology, 13, 34-38 An online version of the paper can [...]
Behavioral Bias Bingo: Disposition Effect
Sell Winners Too Early and Hold Losers Too Long Researchers have explored the "disposition effect" for years, which describes how investors are more likely to sell [...]
Behavioral Bias Bingo: The Affect Heuristic
How do your feelings affect your decisions? "Humans perceive and act on risk in two fundamental ways. Risk as feelings refers to individuals' instinctive and [...]
Earnings Growth Rate Mean-Reversion–it’s Science
We're often asked: Why does value investing work? You guys simply buy crappy high-risk companies. Of course you outperform. I typically agree with claims that [...]
Behavioral Bias Bingo: “Knew it all along” bias
Hindsight bias: How we overestimate our prediction abilities People tend to overestimate their own predictive power when events have already occurred. This is commonly known [...]
Trusting Your Financial Advisor: Beware of your Behavioral Bias
Financial advisers are ubiquitous in the US, where many investors hire them to assist with investing, financial planning and other types of financial decision-making. Advisers [...]
Behavioral Bias Bingo – Hyperbolic Discounting, Present Bias and the Disposition Effect in Investing
Hyperbolic discounting and Present bias Executive Summary: "Intertemporal tradeoffs are ubiquitous in decision making, yet preferences for current versus future losses are rarely explored in [...]
Behavioral Bias Bingo — Ellsberg / Allais paradoxes: choice under uncertainty
Human beings crave certainty and loath ambiguity. People naturally gravitate towards the "sure thing" versus another option where the outcome is uncertain. Sometimes this is [...]