Nicholas Barberis teaches at Yale's School of Management and studies the psychology behind pricing--or why we place the value we do on financial assets. So when he looks at the root causes of the global financial crisis, he is drawn to the behavior of consumers, investors, and bankers, and the cognitive psychology behind that behavior. Barberis does not fall into the camp of economists who believe that these are always "rational agents." In this talk before Yale alumni, he explains behavioral finance, and how irrational decision-making factored in to the economic meltdown (skip to 4 minutes in for the start of the talk):
Posted
06-26-2009 7:35 AM
by
Graham Griffith