Framing Effect
Framing effect is a behavioral concept in which people react differently to two identical proposals depending on how they are presented. The framing effect is a bias, in which people’s decision for two identical options differs depending on whether it is presented as a loss or as a gain; People tend to avoid risk when a positive frame […]
Just Because Syndrome
Do you plan your weekend trip in advance or just pack your bag and go on an unplanned trip?? An unplanned trip sounds risky right!! Then why doesn’t unplanned finance sound risky? Why does planning your financial future always take a back seat?? Our personal finance decisions affect our life on a daily basis. Future financial […]
Recency Bias in investing
Recency Bias is pretty simple. Just think it this way “your short term memory dominates your long term memory” Usually it is the tendency that what happened in recent past will continue in the future. Consider an example of flipping a coin. We all know that the probability of any of the two possible outcomes in […]