“There have been great societies that did not use the wheel, but there have been no societies that did not tell stories.” —Ursula K. LeGuin To listen to some scholars of decision-making, it is a great wonder that humans have survived as long as they have. We are constantly prone to biases, rely on simplistic … More Different Minds: why we need human capabilities and machine intelligence*
I am delighted to introduce a guest blog by Kevin Rodgers, formerly global head of foreign exchange at Deutsche Bank, with an impressive career in trading. Kevin is also the author of a great new book which charts the major changes in investment banking ‘Why aren’t they shouting?’, not to mention a pretty good opera singer. … More Anxiety, adrenaline and automation
Successful fraud requires both a set of skills and a willingness to deliberately target and deceive others. The most successful fraudsters have a capacity to look us in the eye, to engage our trust and then betray it without a qualm. This capacity is actually quite rare and often associated with personality disorder (or perhaps … More Scams, Victims, and Scammers
“Money doesn’t talk it swears” Bob Dylan Differences in attitudes to money are a major cause of disagreements in relationships. Research shows that financial disagreements are one of the more frequent and less easily resolved causes of relationship conflict. One study found that whilst people are often attracted to potential partners with different emotional reactions to spending, that … More Money and relationships
Let’s call him James, a trader in a City investment bank; young, smartly dressed, confident, and a little impatient. He sat across from me in the interview: “It’s really important to stay cool. For myself, I can say that I really don’t have much emotion while I trade”. Half an hour later, as he relaxed … More ‘The heart has its reasons’: emotions and cognition in the world of finance
Here is a link to my interview with Michael Considine of Share Radio. Where I talk about my research on emotions and investment and the work of the True Potential Centre for the Public Understanding of Finance.
Hermit crabs rely on acquiring discarded shells for their protection and are constantly on the look-out for better shells. However, faced with environmental stress they prefer to stick with their old shell, however unsuitable, than risk moving to a new one[i]. Experiments with rats show that under stress habitual behaviour persists longer in the face … More On fund-managers, rats and hermit crabs: reversion to familiar habits under stress
The Open University’s centre for the Public UnderStanding of Finance (PUFin) launches new MOOC Lead educator: Martin Upton, Director of the True Potential Centre for the Public Understanding of Finance (PUFin) at the Open University Business School, and former Treasurer of Nationwide Business Society Gain the skills to manage your personal finances: managing budgets, debts, … More New Personal Finance MOOC
I gave this talk at the launch of Essentia Analytics, an innovative firm developing software to help fund managers track and improve their susceptibility to behavioural biases.