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Business World

Biases in the hiring process

This short article aims to showcase behavioural biases in the hiring process and shed light on how to effectively prepare for a job interview considering three key biases which may affect the interviewer, the candidate, or both.  1.         The Anchoring Effect  ‘The anchoring effect is a cognitive bias that describes the common human tendency to rely […]

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Business World Irrational Investments and Behavioural Finance

How biases affect market prices

How much would you pay for a tulip? And for a nice apartment downtown? What is going on when the market price of such an object is extremely high? Chances are you are facing a market bubble. At least once in our life, we have heard about the above-mentioned market bubbles. But what exactly are […]

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Business World

How biases affect betting in the world’s most betted-on sport, football

Football, or soccer, as you wish to call it, is the most popular sport in the world by a landlside. Its viewership numbers dominate those of any other sport. For comparison’s sake, the NFL Super Bowl, which is the most-watched sporting event in the United States, reached a total viewership of just under 100 million […]

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Business World

Let’s talk about trust.

Do you trust strangers?  Look at the following picture, who would you trust among them? Who would you give the keys to your house for a night to, for example? Or your car?  The answer actually doesn’t matter. I don’t even know who these people are, it’s just a random picture that I found on the Internet.  The fact that […]

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Business World

Failing to fail: behavioral insights behind startup failure

How to succeed in a startup business? Well, there is no cookie-cutter approach that works universally. Every business has a set of unique characterizing elements and has to find its optimal organizational balance. Notwithstanding the uniqueness of the success factors, which sometimes can be summarized with “luck”, there is an often overlooked commonality behind startup business failures which can be analyzed through behavioral lenses.  A well-known statistic is that 9 out of […]

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Business World

What we could get wrong about motivating people

Imagine you are a leader of the group, a CEO of a well-known firm. Your job is to guide people to achieve something together. As a businessman first thing that pops into your head, in order to make people work harder, is the simplest way: I should pay them more. If I want a group […]

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Business World

Commitment contracts

A famous Norwegian proverb says: “Tomorrow I shall begin a better life. I think . . .” Probably everyone can somehow relate to this proverb – some of us want to quit smoking but fail, some of us want to exercise more but fail, some of us want to read more but fail. There are so many ways of how […]

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Business World

Big Data for nudging

Nudging is the careful construction of decision-making environments aimed at helping decision makers making wiser choices, possibly at their advantage. The first applications of nudges regarded mainly public policies and programs aimed at a general public, with no particular distinctions between potential users. Tax compliance, energy saving and even increasing men’s aim in public toilets […]

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Business World

The rise of the gaming industry

In the classic economic model, the measure of utility is presumed to be the key to understanding agent’s decision-making. However, most factors concerning the study of utility are assumed to be exogenous. The emergence of the field of behavioural economics has sought to challenge that by drawing insights on the endogenous factors that affect that […]