Predictably Irrational – How Investors Frame Decisions

Via Advisor Perspectives:

One of the most provocative sessions at Schwab Impact conference was given by Dan Ariely, who deftly summarized his current research in the important field of behavioral finance.  Ariely is a professor of economics at Duke University and a visiting professor at MIT’s Media Laboratory.  He is also the author of the popular book, Predictably Irrational.

Ariely’s message was that, no matter how good their intentions or how deep their experience, people – investors specifically – consistently make the wrong decisions.  They behave irrationally, and predictably so.

Advisors who understand the natural biases in individual behavior can frame questions that will steer their decision-making process in a more rational – and economically better – direction.

Read the full article here

1 Comment

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  By China Mbt Shoes, Monday, May 3, 2010 @ 2:51 pm

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