Anchoring bias
December 11, 2018
Anchoring bias.  People have a strong tendency to perceive prices as “belonging” within a range once that range has been previously established.  Anchoring refers to our propensity to attach our...
Herd behavior
December 11, 2018
Herd behavior.   An experiment conducted at the University of Leeds showed that it takes a minority of just five per cent to influence a crowd’s direction – and that...
Confirmation bias
December 9, 2018
Confirmation bias.  In the finance world, investors will often over-emphasize information that supports his existing thesis while actively ignoring information which might discredit that thesis. When looking for new information,...