Behavioural Finance
The principles of transparency and disclosure are visible everywhere from fast-food menus to financial regulation. But if lawmakers don’t consider the behavior of both markets and consumers, better information may not translate to smarter shoppers.
Investors sometimes play a psychological trick on themselves when they lose money, research suggests—and that mental accounting trick may help improve their investment performance.
How do you know if you are selecting the right motivational strategies to convince your employees, peers, and even yourself to work smarter and harder?
Small changes in how retirement funds display information can have big effects on the way households invest their money, according to research by Chicago Booth PhD candidate Maya O. Shaton. How materials display a portfolio’s returns can affect how much an investor trades and how much risk that investor takes.