Hi all! I’ve posted some helpful links to go with the behavioral economics/finance presentation from the event, and I will updating some of the content as the day goes on. In addition, you can see an animated version of the slides below.
(Note: To advance properly through the animation, just wait a few seconds for the pause button to turn back to a play button and click forward. If you are experiencing difficulties, you probably need to install the latest versions of Flash and Shockwave from Adobe.)
- For more on why you’ll pay more for a beer if you think it was purchased from a fancy hotel, see “Mental Accounting and Consumer Choice” by Richard Thaler.
- For more on the Joshua Bell story, see “Pearls Before Breakfast” by Gene Weingarten.
- For more on the wine experiment, see “Fine as North Dakota Wine: Sensory Expectations and the Intake of Companion Foods”
- For more on social preferences and music choices, see “Experimental Study of Inequality and Unpredictability in an Artificial Cultural Market.”
- For a rather detailed overview of prospect theory, including the experiment on the framing of gains versus losses, see Prospect Theory: An Analysis of Decision Under Risk”
- For more on the disposition effect, see Terrance Odean, “Are Investors Reluctant to Realize Their Losses?”
- For more on the economic analysis of game shows involving chance, see “Deal or No Deal? Decision Making under Risk in a Large-Payoff Game Show.”
- For a more general discussion regarding how prior outcomes affect risk attitudes, see “Mental Accounting Matters” by Richard Thaler.
- For more on our knee-jerk intuitions about numbers and choices versus well-reasoned responses, see Thinking, Fast and Slow by Daniel Kahneman.
- See here for an overview of the Stanford marshmallow experiment.
- For more on the Halloween experiment see this surprisingly in-depth article from the LA Times.
In case you are feeling particularly studious, here are some other items that you night find interesting:
- A brief history of behavioral economics, with pictures
- Jay Ritter, “Behavioral Finance” (not mentioned in the talk but a good overview of the subject)
- Richard Thaler, “The End of Behavioral Finance”
- Jeremy Siegel and Richard Thaler, “Anomalies: The Equity Premium Puzzle”
- Shlomo Benartzi and Richard Thaler, “Myopic Loss Aversion and the Equity Premium Puzzle
- J. Bradford DeLong and Konstantin Marin, “The U.S. Equity Return Premium: Past, Present, and Future”
- Owen Lamont and Richard Thaler, ‘Anomalies: The Law of One Price in Financial Markets”
- Charles Lee, Andrei Shleifer, and Richard Thaler, “Anomalies: Closed-End Mutual Funds”
- Warner De Bondt and Richard Thaler, “Anomalies: A Mean-Reverting Walk Down Wall Street”
- Richard Thaler, “Anomalies: The January Effect”
- Richard Thaler, “Seasonal Movements in Security Prices II: Weekend, Holiday, Turn of the Month, and Intraday Effects”
- Inefficient Markets: An Introduction to Behavioral Finance
- Advances in Behavioral Finance
- The Winner’s Curse: Paradoxes and Anomalies of Economic Life (Note: This volume contains a general-reader treatment of Thaler’s “Anomalies” papers listed above.)
- Thinking, Fast and Slow
- Predictably Irrational: The Hidden Forces That Shape Our Decisions
- Nudge: Improving Decisions About Health, Wealth, and Happiness
I hope this is helpful, and feel free to send follow up questions or inquiries my way at econgirl at economistsdoitwithmodels dot com.