個案資料

People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. Chapter 3 is an in-depth look at attention biases. Building on chapter 2, many attention biases span intuition and reason, marked by failures to attend to key information while devoting too much attention toward other information. This chapter starts by discussing focused attention biases: salience bias, default effect, optimism bias, ostrich effect, framing bias, hindsight bias, in-group bias, and hot hand effect. Next, cognitive illusions related to attention are unpacked, including illusion of control, Gambler's fallacy, and decision fatigue. These biases stem from interactions between our attention systems and our conscious beliefs. Relevant research, examples, and relevant brain mechanisms to each bias are also described as well as important remedies to each bias when it comes to investing.

• Employee values
• Organizational behavior
• Psychology and neuroscience
• Investment management