Behavioral Economist

Behavioral Economist

A theorist who attempts to explain economic participants' decisions as those of rational actors looking out for their self-interest given the sometimes inefficient nature of the market. Tracing its origins to Adam Smith's The Theory of Moral Sentiments, one of behavioral economists' primary observations holds that investors and people in general make decisions on imprecise impressions and beliefs rather than rational analysis. A second observation states that the way a question or problem is framed to an investor will influence the decision he/she ultimately makes. These two observations largely explain market inefficiencies; that is, behavioral economists hold that markets are sometimes inefficient because people are not mathematical equations. Behavioral economics stands in stark contrast to the efficient markets theory. See also: Naive diversification, Formula plan, Subjective probabilities.
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Financial advisory firm Personal Capital has named Nobel Memorial prize winner Harry Markowitz and behavioral economist Shlomo Benartzi to its board of academic advisors, the company said.
Studies like those conducted by Dan Ariely, a behavioral economist at Duke University, and a team of researchers found that performance can actually decrease as performance incentives increase.
Shlomo Benartzi, the UCLA professor and behavioral economist, has written about something he calls the 90-10-90 rule: that at least 90% of employees should be enrolled in their employer's plan; that savings rates should be 10% at minimum; and that 90% of investors should be invested in a proper asset-allocation fund or model.
I doubt that any behavioral economist would argue that humans only act irrationally.
Together we've developed a solution to fix the broken innovation process that any behavioral economist would love.
In the book, a behavioral economist (Chen) and journalist (Kravosky) set out to detail the lessons learned from what is a fairly young field of economic inquiry: experimental economics.
That's the message in our cover story this month with behavioral economist Dan Ariely, and in our profiles of the 2010 SMA Managers of the Year which follow.
Edge http://www.edge.org/3rd_culture/kahneman_taleb_DLD09/kahneman_taleb_DLD09_index.html, contains a video link to a Taleb presentation with the behavioral economist Daniel Kahneman.
She is a behavioral economist, a certified Gallup strengths coach and the grand prize winner of the firstSinag Financial Literacy Digital Journalism Awards.
A few years ago, behavioral economist Dan Ariely published a fascinating book that summarizes recent research into self-deception.
Richard Thaler, a professor at the University of Chicago, is a highly iegarded behavioral economist. He argued in his influential book Nudge: Improving Decisions about Health, Wealth, and Happiness (coauthored with Cass Sunstein) that people do not make decisions in a vacuum, based on their own analysis of the information and in line with their preferences.
--Edward Hall, Behavioral Economist at Columbia University on the poetry of science: Realizing our potential through humanizing our research.

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