BlogHide Resteemsretaliator (58)in hive-175254 • 4 years agoHuman misjudgment - How we get things WRONG!Rationality We have discussed rationality and thought a lot , and, in the end, we concluded that humans tend to be pretty irrational. But how exactly do we get things wrong? Positive…retaliator (58)in hive-175254 • 4 years agoProbabilities are complicated - How YOU misjudge uncertainty!Probabilities The probability of an event tells us how likely it is no happen in the period of time we're considering. They can range from being infinitesimally small, like the chances of an…retaliator (58)in hive-175254 • 4 years agoThe consequences of high Efficiency - Making money is HARD!Efficiency We explored Efficiency on one of my previous posts , but, in short, it is a measure of how well prices respond to existing information. The Real World is Efficient Most markets…retaliator (58)in hive-175254 • 4 years agoThe Human Value Function - How we make DecisionsValue Function In one of the most cited papers in Economics, Kahneman & Tversky present the Value Function: Possible Value Function, made with GeoGebra It was created to explain how…retaliator (58)in hive-175254 • 4 years agoMarket Efficiency - What is it?Market Efficiency Efficiency is defined as: How quickly is new information considered for determining the price of things. Degrees of Efficiency Efficiency is a spectrum, meaning you…retaliator (58)in hive-175254 • 4 years agoHow Inflation can wipe out your savings, debt, and Bond investments - At the same time!Inflation I talked about Inflation in a previous post , but, in essence, you can think about it as a decrease in the value of one unit of currency. For example, if there was a lot of…retaliator (58)in hive-175254 • 4 years agoHow Limited Liability allows you to invest! - LLCs explainedBefore Limited Liability For a long time, investors in a company were liable for that company's bad decisions! Including paying off their debt! This might seem ridiculous to us now, but for many…retaliator (58)in hive-175254 • 4 years agoTake advantage of Shorting! - What really is Shorting and how Investors can use this toolShorting You probably already heard of the term Shorting and maybe even have some idea of how it works, but how does it function in practice? How can you use it? The inner workings…retaliator (58)in hive-175254 • 4 years agoPortefolio Diversification - Why it's so important and how it works!Risk I've talked about Risk in a previous post, and how we can minimize our chances of failure using Insurance . When it comes to investments, both of these concepts must be considered…retaliator (58)in hive-175254 • 4 years agoDisasters and Insurance - Protecting ourselves from the WorseDisaster Insurance Disasters are, sadly, a common occurrence in our world. As such, many tools have been created to protect people from the consequences of disasters, such as Insurance. In this…retaliator (58)in hive-175254 • 4 years agoThe problems with Insurance - Moral Hazard and Selection BiasInsurance I talked about Insurance in my last post , but, in short, you can think of it as any imaginable way of minimizing risk, either by doing it yourself or by paying a company to do…retaliator (58)in hive-175254 • 4 years agoPreventing Risk - How Insurance WorksRisk Just like we saw in my last post , every single decision we make carries with it some risk. So, how can we minimize the chances that bad outcomes will materialize? Well, beyond just…retaliator (58)in hive-175254 • 4 years agoRisk - Why nothing is risk-free and how to compare different Risks!Risk Risk is also a board game "the possibility of something bad happening" ( Cambridge Dictionary ) It's always present. Every decision, project, or investment carries with it risk.…retaliator (58)in hive-175254 • 4 years agoFinance is a Tool - What does that mean for Society?Finance We have explored Finantial Markets in an earlier post. Now, we'll cover it again, but this time analyzing how it impacts us all, even if we aren't, apparently, connected or dependent…retaliator (58)in hive-175254 • 4 years agoWhy your Happiness can't increase foreverHappiness As we have explored in my last post , happiness is influenced by many factors, namely material and psychological ones. But, even if all the inputs would put you on a path to…retaliator (58)in economics • 4 years agoTake a look!Click it You know you want it ;) Itretaliator (58)in hive-175254 • 4 years agoHappiness and Money - How does Money influence happiness?Happiness and Money In classical economics, it's assumed that humans have unlimited wishes, we always want more things. But, with psychology getting better at explaining why we do things…retaliator (58)in hive-175254 • 4 years agoHow effective is Foreign Aid? - Is it worth it?Foreign Aid Foreign Aid is international help sent by richer countries to developing countries. It is intended to help them grow and invest in their own economies' modernization and…retaliator (58)in hive-175254 • 4 years agoHow do immigrants affect the economy?Immigration People migrate inside their own countries and between countries for various reasons, the main one being to simply try to have a better life. The Economy But how does the movement…retaliator (58)in hive-175254 • 4 years agoWhy do taxes exist??Taxes Taxes have been a part of human society from the beginning of time, from the Roman Empire to the Egyptians. But, nowadays, what purpose do they serve, beyond just "raising money for the…
