Episode 8: Biases and Heuristics Part 1
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In this episode, we begin our exploration into various heuristics and biases. We dive into type 1 thinking and explore the pros and cons of our mental shortcuts.
00:00 Introduction
07:40 Background on Biases and Heuristics
08:30 Processing Constraints - Confirmation Bias and Cognitive Dissonance
16:49 3 Perception Issues: Halo Effect, Primacy Effect, Recency Effect
23:29 Heuristics Defined "Thinking Fast and Slow"
24:04 Two Types of Thinking - Type 1 (Automatic, non-cognitive)
28:00 Self Preservation Heuristics
28:36 Diversification Heuristics
30:28 Ambiguity Aversion
38:48 Law of Small Numbers (myopia or short-sightedness)
44:15 Type 2 Thinking (Cognitive and Requires Effort)
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!
#behavioralfinance #psychologyofmoney #financialdecisions
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Disclaimer: www.bryanfoltice.com/cv
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