THE JOURNAL OF FINANCE • VOL. LVI, NO. 4 • AUGUST 2001 Investor Psychology and Asset Pricing DAVID HIRSHLEIFER* ABSTRACT The basic paradigm of asset pricing is in vibrant f lux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital
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How We Know What Isn't So The Fallibility of Human Reason in Everyday Life Thomas Gilovich THE FREE PRESS A Division of Macmillan, Inc. NEW YORK To Karen and liana Contents Acknowledgments 1. Introduction vn 1 PART ONE Cognitive Determinants of Questionable Beliefs 2. Something Out of Nothing: The Misperception and Misinterpretation of Random Data 3. Too Much from Too Little: The Misinterpretation of Incomplete and Unrepresentative Data 4. Seeing What We Expect to
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CONTE NTS Introduction 1 WHY YOU SHOULD VISIT CEMETERIES: Survivorship Bias 2 DOES HARVARD MAKE YOU SMARTER?: Swimmer’s Body Illusion 3 WHY YOU SEE SHAPES IN THE CLOUDS: Clustering Illusion 4 IF 50 MILLION PEOPLE SAY SOMETHING FOOLISH, IT IS STILL FOOLISH: Social Proof 5 WHY YOU SHOULD FORGET THE PAST: Sunk Cost Fallacy 6 DON’T ACCEPT FREE DRINKS: Reciprocity 7 BEWARE THE ‘SPECIAL CASE’: Confirmation Bias (Part 1) 8 MURDER YOUR DARLINGS: Confirmation Bias (Part 2) 9 DON’T BOW TO AUTHORITY: Authority
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Introduction 3 1. The Evolution of Cognition and Biases in Negotiation Research: An Examination of Cognition, Social Perception, Motivation, and Emotion 7 Leigh Thompson, Margaret Neale, and Marwan Sinaceur 2. Cultural Differences and Cognitive Dynamics: Expanding the Cognitive Perspective on Negotiation 45 Michael W Morris and Michele J. Gelfand . 3. I
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instinctive to form expectations of people the first time they are encountered. 1b. Describe the effect of cognitive dissonance on behavior and attitude change. Numerous experiments and studies have shown that cognitive dissonance has the power to change attitudes and behavior. Leon Festinger’s (1957) cognitive dissonance theory proposes, “people have a fundamental cognitive drive to reduce this dissonance by modifying an existing belief, or rejecting one of the contradictory ideas” (Wikipedia, 2001). Better
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Pursuit of Happiness Happiness can be defined by everyone differently. Everyone I know says they are on a path seeking happiness but they can never truly define it, or their path toward it. So how do they know they are happy? Is it just a mind set? Being happy cannot be measured with wealth or possession of objects. A new mansion, expensive clothing, or a new car does not equate to happy feelings. Sure, I should think someone with these items would be happy, but it is never guaranteed. Having
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It is easy to say something is hard to do if you never tried doing it. This saying hits home for me because there was a time I thought I could not play sports or thought that it would be a struggle because I had asthma. After beating myself up over not having the courage to try, my friends encouraged me to try out for basketball. When starting out it was a little hard to run and bounce the ball at the same time, it took even more energy and effort to shoot the ball. This did not help in keeping
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For all things listed as a study make sure you know the IV, DV, results and any theory that might be associated. Verbal Knowledge Lecture 16/ chapter 9/ Meyer What is a concept, categorization, and why do we categorize? What is the definitional approach? The prototype approach? The exemplar Approach? What do we wactually use? Rosch’s study of family resemblance. What is the typicality effect? Rosch’s study of it with priming colors. What are the types of categories according
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Outline and evaluate the working memory model In the working memory model, there are four main components; The central executive is the most important component as it is involved in problem solving and decision making. It controls attention and plays a vast part in planning and processing information from subsidiary systems and LTM. It is flexible and can process information. It has a limited capacity and can only contain a limited amount of information at one time, Secondly the phonological loop
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is an idiographic approach. There are six principle psychological perspectives which are applied to the understanding which includes; behaviourism, social learning, psychodynamic, humanistic, cognitive and developmental. These perspectives can be used to explain the development of individuals. Cognitive development starts when developing from when we are born. It refers to how intelligence, conscious thought and problem solving develop from infancy. As well as improving the ability to think, learn
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