Monetary Markets (2011) (ECON 252)
Deviating from an absolute perception within the precept of rationality, Professor Shiller elaborates on human failings and foibles. Acknowledging impulses to take advantage of these weaknesses, he emphasizes the position of things that hold these impulses in verify, particularly the will for praise-worthiness from Adam Smith’s The Idea of Ethical Sentiments. After a discourse on Character Psychology, Professor Shiller begins an inventory of vital matters in Behavioral Finance with Daniel Kahneman’s and Amos’s Tversky’s Prospect Idea. The worth operate and the chance weighting operate, as two key elements of this concept, assist clarify sure patterns in folks’s on a regular basis choice making, e.g. the existence of diamond ring insurance coverage and airline flight insurance coverage. An in-class experiment underscores the prevalence and significance of the idea of overconfidence. Additional matters embody Remorse Idea, playing habits, cognitive dissonance, anchoring, the representativeness heuristic, and social contagion. Professor Shiller concludes the lecture with some views on ethical judgment within the enterprise world, addressing shared values and integrity.
00:00 – Chapter 1: Human Failings & Folks’s Want for Reward-Worthiness
11:37 – Chapter 2. Character Psychology
20:14 – Chapter 3. Prospect Idea and Its Implications for On a regular basis Choice Making
35:53 – Chapter 4. Remorse Idea and Playing Habits
40:40 – Chapter 5. Overconfidence, and Associated Anomalies, Alternatives for Manipulation
57:16 – Chapter 6. Cognitive Dissonance, Anchoring, Representativeness Heuristic, and Social Contagion
01:12:38 – Chapter 7. Ethical Judgment within the Enterprise World
Full course supplies can be found on the Yale On-line web site: on-line.yale.edu
This course was recorded in Spring 2011.
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