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Behavioral economics

Behavioral economics
There are three prevalent themes in behavioral finances:[3] Issues in behavioral economics[edit] Behavioral finance[edit] The central issue in behavioral finance is explaining why market participants make systematic errors contrary to assumption of rational market participants.[1] Such errors affect prices and returns, creating market inefficiencies. It also investigates how other participants take advantage (arbitrage) of such market inefficiencies. Behavioral finance highlights inefficiencies such as under- or over-reactions to information as causes of market trends (and in extreme cases of bubbles and crashes). Other key observations include the asymmetry between decisions to acquire or keep resources, known as the "bird in the bush" paradox, and loss aversion, the unwillingness to let go of a valued possession. Quantitative behavioral finance[edit] Quantitative behavioral finance uses mathematical and statistical methodology to understand behavioral biases. Financial models[edit]

Quality of life Quality of life (QOL) is the general well-being of individuals and societies. QOL has a wide range of contexts, including the fields of international development, healthcare, politics and employment. Quality of life should not be confused with the concept of standard of living, which is based primarily on income. Overview[edit] Standard indicators of the quality of life include not only wealth and employment but also the built environment, physical and mental health, education, recreation and leisure time, and social belonging.[1][2] According to ecological economist Robert Costanza: While Quality of Life (QOL) has long been an explicit or implicit policy goal, adequate definition and measurement have been elusive. Identity and engagementCreativity and recreationMemory and projectionBelief and ideasGender and generationsEnquiry and learningWellbeing and health Also frequently related are concepts such as freedom, human rights, and happiness. Quantitative measurement[edit] Other measures[edit]

Psychology Psychology is an academic and applied discipline that involves the scientific study of mental functions and behaviors.[1][2] Psychology has the immediate goal of understanding individuals and groups by both establishing general principles and researching specific cases,[3][4] and by many accounts it ultimately aims to benefit society.[5][6] In this field, a professional practitioner or researcher is called a psychologist and can be classified as a social, behavioral, or cognitive scientist. Psychologists attempt to understand the role of mental functions in individual and social behavior, while also exploring the physiological and biological processes that underlie cognitive functions and behaviors. While psychological knowledge is often applied to the assessment and treatment of mental health problems, it is also directed towards understanding and solving problems in many different spheres of human activity. Etymology History Structuralism Functionalism Psychoanalysis Behaviorism Humanistic

Philosophy Karl Popper: Discussion Popper's Problem of Induction. Quotes Karl Popper Discussion of Metaphysics / Philosophy of Karl Popper's Problem of Induction & the Evolution of Absolute Truth Karl Popper Pictures, Quotes 'Objective Knowledge' In my opinion, the greatest scandal of philosophy is that, while all around us the world of nature perishes - and not the world of nature alone - philosophers continue to talk, sometimes cleverly and sometimes not, about the question of whether this world exists. They get involved in scholasticism, in linguistic puzzles such as, for example, whether or not there are differences between 'being' and 'existing'. (Popper, 1975) Introduction to Karl Popper The philosophy of Karl Popper and Thomas Kuhn are very similar - they argue that truth is evolving and can never be absolutely known. I apologise if this is abrupt - but we can now deduce what reality is without opinion, so this is stated absolutely simply because it is true. Geoff Haselhurst Realism of Karl Popper My thesis is that realism is neither demonstrable nor refutable.

Happiness Happiness is a mental or emotional state of well-being defined by positive or pleasant emotions ranging from contentment to intense joy.[1] A variety of biological, psychological, religious, and philosophical approaches have striven to define happiness and identify its sources. Various research groups, including positive psychology, are employing the scientific method to research questions about what "happiness" is, and how it might be attained. The United Nations declared 20 March the International Day of Happiness to recognise the relevance of happiness and wellbeing as universal goals. Definition Philosophers and religious thinkers often define happiness in terms of living a good life, or flourishing, rather than simply as an emotion. Happiness is a fuzzy concept and can mean many different things to many people. Research results Meditation has been found to lead to high activity in the brain's left prefrontal cortex, which in turn has been found to correlate with happiness.[11] Buddhism

Economics For a topical guide to this subject, see Outline of economics. Economics is the social science that studies the behavior of individuals, households, and organizations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited resources to obtain these ends, a set of stable preferences, a definite overall guiding objective, and the capability of making a choice. There exists an economic problem, subject to study by economic science, when a decision (choice) has to be made by one or more resource-controlling players to attain the best possible outcome under bounded rational conditions. Definitions There are a variety of modern definitions of economics. a branch of the science of a statesman or legislator [with the twofold objectives of providing] a plentiful revenue or subsistence for the people ... J. Microeconomics Markets

Nietzsche: Beyond Good and Evil A brilliant young man, he was appointed professor at the University of Basel aged 24 having not even finished his degree. His evanescent philosophical life ended 20 years later when he went insane and died shortly afterwards. Nietzsche's argued that the Christian system of faith and worship was not only incorrect, but harmful to society because it allowed the weak to rule the strong - it suppressed the will to power which was the driving force of human character. However, without God he felt that the future of man might spiral into a society of nihilism, devoid of any meaning; his aim was for man to realise the lack of divine purpose and create his own values. Watch the full documentary now -

Meritocracy Definitions[edit] Early definitions[edit] Supporters of meritocracies do not necessarily agree on the nature of "merit", however, they do tend to agree that "merit" itself should be a primary consideration during evaluation. In a more general sense, meritocracy can refer to any form of government based on achievement. This is in contrast to the term originally coined by Michael Young in 1958, who critically defined it as a system where "merit is equated with intelligence-plus-effort, its possessors are identified at an early age and selected for appropriate intensive education, and there is an obsession with quantification, test-scoring, and qualifications." [5] Meritocracy in its wider sense, may be any general act of judgment upon the basis of various demonstrated merits; such acts frequently are described in sociology and psychology. More recent definitions[edit] The most common form of meritocratic screening found today is the college degree. Etymology[edit] History[edit] Australia[edit]

Linguistics In the early 20th century Ferdinand de Saussure distinguished between the notions of langue and parole in his formulation of structural linguistics. According to him, parole is the specific utterance of speech, whereas langue refers to an abstract phenomenon that theoretically defines the principles and system of rules that govern a language.[9] This distinction resembles the one made by Noam Chomsky between competence and performance, where competence is individual's ideal knowledge of a language, while performance is the specific way in which it is used.[10] In classical Indian philosophy of language, the Sanskrit philosophers like Patanjali and Katyayana had distinguished between sphota (light) and dhvani (sound). In the late 20th century, French philosopher Jacques Derrida distinguished between the notions of speech and writing.[11] Nomenclature[edit] Variation and Universality[edit] Lexicon[edit] The lexicon is a catalogue of words and terms that are stored in a speaker's mind.

The Century of the Self This series is about how those in power have used Freud's theories to try and control the dangerous crowd in an age of mass democracy. Sigmund Freud, the founder of psychoanalysis, changed the perception of the human mind and its workings profoundly. His influence on the 20th century is widely regarded as massive. Freud's daughter Anna Freud, a pioneer of child psychology, is mentioned in the second part, as well as Wilhelm Reich, one of the main opponents of Freud's theories. Happiness Machines. The Engineering of Consent. There is a Policeman Inside All of Our Heads, He Must Be Destroyed. Eight People Sipping Wine In Kettering.

Status Anxiety Status Anxiety is a nonfiction book by Alain de Botton. It was first published in 2004 by Hamish Hamilton; subsequent publications have been by Penguin Books. Central thesis[edit] Status Anxiety discusses the desire of people in many modern societies to "climb the social ladder" and the anxieties that result from a focus on how one is perceived by others. De Botton claims that chronic anxiety about status is an inevitable side effect of any democratic, ostensibly egalitarian society. Causes: Solutions: Film[edit] A two-hour documentary film about this thesis, also called Status Anxiety and written by Alain de Botton, was released in 2004. See also[edit] External links[edit] Status Anxiety - Alain de Botton website

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