In the digital age, the concept of privacy has become paradoxical. While surveys consistently show that people express deep concerns about online privacy, their behavior often tells a different story (Cho, Lee, & Chung, 2010). Individuals freely share personal data, clicking “accept” on cookie policies or posting sensitive information on social media for superficial benefits. […]
Biases in Christmas Gift-Giving: how to recognize and avoid them With the Christmas season just around the corner, brands and shops all around the world are starting to promote their newest product lines hoping to attract all those customers looking for the best present to give to their family and friends. The amount of options […]
Have you ever chosen to hit the snooze button in the morning instead of getting up to exercise? Or opted to watch television on a Friday night rather than study for an upcoming exam? If so, you may have fallen victim to present bias. Present bias refers to the tendency to prioritize immediate rewards or comfort […]
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Too good to be true?
Understanding Aggressive Advertising and Cognitive Biases of Temu’s Business Model Temu is an online marketplace operated by a Chinese e-commerce company launched in September 2022. It almost offers any product your brain can imagine at strikingly low prices. The online shopping megastore has rapidly gained popularity, attracting millions of customers worldwide, but despite its rapid […]
Have you ever made a successful trade and thought to yourself, “Yeah I knew it, I’m so great, I should start a hedge fund!”? When a couple wins in the stock market it feels like you’re ready to challenge Warren Buffett? There’s nothing wrong with being right a couple of times and winning certainly boosts […]
Loss Aversion and the Sunk Cost Trap in Venture Capital In the high-risk world of venture capital (VC), balancing the tightrope of innovation and risk is a key skill to master. Knowing when risks have reached their limits can mean the difference between cutting losses and doubling down in hopes of a future payoff. This […]
The recent work published by the 2024 Economics Nobel Prize winners has brought to light once again the role institutions play in economic development, making some countries rich and others poor. However, in modern society, it is important to consider the role behavioural economics plays in this, as acknowledged in the “World Development Report” by […]
“Which is more dangerous, a gun or a swimming pool? What do schoolteachers and sumo wrestlers have in common? How much do parents really matter?”. If these don’t sound like typical questions raised by economists, it’s because they are not. But breaking conventional wisdom by exploring the hidden patterns behind daily life occurrences is exactly […]
“Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism” (2009) is a book written by George A. Akerlof, 2001 Economics Nobel Prize winner, and Robert J. Shiller, Economics professor at Yale. In the book, the authors examine the role of emotions and human psychology in shaping economic decisions and […]
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