This may sound like pop generalisation but one cannot ignore the science behind it and the debate since the 18th Century. We all liketo think that our buying and selling is mostly driven by careful rationalisation and well-carried out due diligence... but the facts show other hidden, and quite irrational, forces at work.
Mere mortals like us tend to rely heavily on 'rules of thumb', stereo type and perceived value of discounts or 2-4-1s to spend our money... before working on protecting our decision from buyer's remorse or, worse, criticism from those who we allow to judge us..
Nobel Laurette Daniel Kahneman imposes...
This made me question what drives our choices as individuals and as institutions and ultimately as an economy?
In searching for the answer, I found myself in a world that combined psychological with economic sciences to deliver conclusions under the title of Behavioural Economics.
So imagine, if we choose to buy and sell under the often irrational influence of perceived benefit and value then imagine whole economies driven that way... what does that mean in terms of predicting the market if it rained tomorrow?
Mere mortals like us tend to rely heavily on 'rules of thumb', stereo type and perceived value of discounts or 2-4-1s to spend our money... before working on protecting our decision from buyer's remorse or, worse, criticism from those who we allow to judge us..
Nobel Laurette Daniel Kahneman imposes...
“The confidence people have in their beliefs is not a measure of the quality of evidence but of the coherence of the story the mind has managed to construct.”
This made me question what drives our choices as individuals and as institutions and ultimately as an economy?
In searching for the answer, I found myself in a world that combined psychological with economic sciences to deliver conclusions under the title of Behavioural Economics.
So imagine, if we choose to buy and sell under the often irrational influence of perceived benefit and value then imagine whole economies driven that way... what does that mean in terms of predicting the market if it rained tomorrow?
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