Episode #3 - Introduction to Behavioral Finance Part 2
Manage episode 367151320 series 3485712
In this episode, we continue our Introduction to Behavioral Finance, continuing to look at how our decisions sometimes violate rational maximized "utility".
00:00 Introduction
03:07 You Are a Sum Total of All Decisions You've Made - Big and Small
09:25 Expected Value Review
11:22 Violation #2 of Expected Utility - Framing - Using the Allais Paradox
16:32 Violation #3 of Expected Utility - Risk Domain Specificity
18:16 Four Major Domains of Risk Preferences - #1 Financial Decisions
22:18 Don't Get Addicted to Sports Betting - Arbitrage it Instead!
27:20 Risk Domain #2 - Health and Safety
29:25 Risk Domain #3 - Recreational Risk Taking
31:10 Risk Domain #4 - Social Risk Taking
I hope you enjoy the content and learn all about the topic of Behavioral Finance. I've set up the first few podcasts as mini lectures of my Behavioral Finance course that I teach at Butler University each semester. The goal of this podcast is to provide a comprehensive look into the topic of Behavioral Finance - for free!
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