1. Behavioral Finance
Economics 437

2. Anomalies (popular books)
“Money Ball” by Michael Lewis
“Scorecasting” by Tobias Moskowitz and Jon Wertheim
“Thinking: Fast and Slow” by Daniel Kahneman
“The Undoing Project” by Michael Lewis

3. Psychology Research (Collection of articles compiled in books)
“Judgment Under Uncertainty: Heuristics and Biases,” by Daniel Kahneman, Paul Slovic, and Amos Tversky
“Choices, Values & Frames,” Edited by Daniel Kahneman and Amos Tversky

4. Engineers and Lawyers 70/30 and 30/70
“Dick is a 30 year old man. He is married with no children. A man of high ability and high motivation. He promises to be quite successful in his field. He is well liked by his colleagues.”
Is he an engineer or a lawyer?

5. Is Steve? Farmer Salesman Airline Pilot Librarian Physician
Steve is very shy and withdrawn, invariably helpful, but with little interest in people, or in the world of a reality
Is Steve?
Farmer
Salesman
Airline Pilot
Librarian
Physician

6. Hmmm? We are in a room of 70 engineers and 30 lawyers
Bill is a 30 year old man. He is married with no children. A man of high ability and high motivation, he promises to be quite successful in his field. He is well liked by his colleagues
Is Bill more likely to be a lawyer or an engineer?

7. Representativeness
Less is more
RGRRR
GRGRRR
GRRRRR

8. Here’s an easy one Two hospitals, large one, small one
45 babies born each day in large hospital
15 babies born each day in small hospital
On average, 50 % of babies are male
Over the course of a year, which has hospital has more days when 60% or more babies born are male? The large one or the small one?

9. The End