Behavioural biases and Markets
THE EFFECT OF MYOPIAAND LOSS AVERSION ON RISK TAKING: AN EXPERIMENTAL TEST
RICHARD H. THALER AMOS TVERSKY DANIEL KAHNEMAN ALAN SCHWARTZ
The Endowment Effect, Loss Aversion, and Status Quo Bias
Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler
demand much more to give up an object than they would be willing to pay to acquire it—the endowment effect.
The example also illustrates what Samuelson and Zeckhauser (1988) call a status quo bias, a preference for the current state that biases the economist against both buying and selling his wine.
These anomalies are a manifestation of an asymmetry of value that Kahneman and Tversky (1984) call loss aversion—the disutility of giving up an object is greater that the utility associated with acquiring it.
The Two Friends Who Changed How We Think About How We Think
By Cass R. Sunstein and Richard Thaler
predictably irrational by Dan Ariely
Beer and Free Lunches: What Is Behavioral Economics, and Where Are the Free Lunches?
Outsmart your own biases ...to some extent
DK - not believing you can change your own biases, but critising other people biases
indeed, the paradox is that you are your biases, so how can you change yourself
Not even he believes that the various flaws that bedevil decision-making can be successfully corrected
Kahneman is interested in looking at how to increase the consistency of operations – not the same, he explains, as controlling biases
podcasts and reviews
Morgan Housel - The Psychology of Money Standard Deviations