In the stock market, belief formation is one of the most critical challenges. In our “Finance Tuesdays” series, the first three articles are also focused on belief formation: “availability bias and investments” analyses how people estimate probability based on prevalence or familiarity, “Book review ‘a crisis of beliefs’” is about a novel interpretation of the credit cycle based on representativeness and diagnostic expectations, “Dividend anomaly” introduces mental accounting and […]
What’s in a language? Does our native language have an impact on our identity, on the way we act? Well, turns out that it does. Every language has its own peculiar set of rules and constructions that allow its speakers to convey information in a way that is meaningful and logical to the other speakers. All those rules, declinations, verbs do not only provide […]
A recent study(1) discovered that household consumption accounts for around 60% of the total greenhouse gas (GHG) emissions. The majority of these emissions comes from housing, transportation and food. Within these categories there’s a lot of variation. For example, air travel has a totally different impact if it is compared with train travel, and eating a salad […]
The racial gap in law enforcement has critical negative effects in terms of internal department dynamics and of interaction with policed communities. Closing this racial gap would ensure that the demographic of the police forces matches the demographic of the neighbourhoods they serve, consequently increasing their representativeness and improving their legitimacy. This lack of diversity is particularly critical in the United States, where Federal data collected from 467 local police departments showed that, between 2007 and 2016, more than two thirds of these departments became whiter with respect to […]
The great technological progress we have witnessed in the last twenty years has allowed us to collect and generate a huge amount of data at an unprecedented rate, leading to the beginning of the so-called Big Data era. Nowadays we are relying more and more on algorithms and Big Data analytics to make decisions and evaluate services and employees. But can […]
While most countries have begun the process of vaccinating against coronavirus, the data about who is getting vaccinated- or more importantly, who isn’t – are troubling. First, those least vulnerable to COVID-19 are being vaccinated before the highly at-risk individuals who don’t make or don’t attend their vaccination appointments. Second, vaccination rates are substantially lower amongst ethnic […]
Flow is “the state in which people are so involved in an activity that nothing else seems to matter; the experience itself is so enjoyable that people will do it even at great cost, for the sheer sake of doing it”.
In their book Nicola Gennaioli, professor of finance at Bocconi University, and Andrei Shleifer, professor of economics at Harvard University “A Crisis of Beliefs” give the reader a novel interpretation of the 2008 crisis as well as the tools to understand financial instability on a larger scale. This book is a summary of the authors’ research and it is effective because it gives the possibility to almost everyone […]
Diplomacy has deeply ancient roots: historians and anthropologists found traces of it in the Middle East, China, and India in the first millennium BCE. Chinese diplomatic apparatus included leagues, missions, a system of polite discourses between “warring states”, and even resident envoys who served as hostages to guarantee the good behavior of those who sent […]
How is voting behaviour influenced by cognitive biases? In which ways does social interaction affect the beliefs of individuals? And what are the psychological determinants of support for either a liberal or conservative ideology? The event held on April 7, 2021 answered these and more questions, offering us some insight on the behavioural and psychological underpinnings of political preferences of voters. With Bocconi Professor Catherine De Vries as our moderator, we invited as our speakers Dan Braha, Full Professor at University of Massachusetts, and Yoel Inbar, Associate […]
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