Episode #6 - Prospect Theory, Framing, and Mental Accounting Part 2
Manage episode 371583868 series 3485712
In this episode, we continue our deeper dive on Prospect Theory. Here, we learn about framing and mental accounting that comes with our decision-making, in life and finance.
00:00 Introduction
01:49 Introduction to Framing - Positive/Negative
07:16 Auditory Framing
08:28 Visual Framing
11:05 Value Framing
15:44 Mental Accounting - (Sub optimally) Categorizing money, spending or financial events.
23:10 Mental Accounting and Tax Refunds (& House Money Effect)
25:23 Reference Point Dependence
34:59 Prospect Theory Applied to Horse (and Sports) Betting 1. Favorite/Longshot Bias 2. End of the Day Effect 3. Recency Effect
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!
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