Show Notes
[03:36] Behavioral Economics – Prof. Howe discusses his background, career, and current activities.
[07:23] Kahneman’s Nobel Prize – Behavioral economics is a field of study that lies at the nexus of economics and psychology. Prof. Howe discusses how the Nobel laureate’s teaching of behavioral economics impacts his teachings.
[10:53] Diversified Portfolios – Prof. Howe highlights the importance of diversifying one’s investments.
[15:00] Confirmation Bias – Confirmation bias is a term that refers to our natural predisposition to be receptive to new information that confirms our existing beliefs. Prof. Howe explains how confirmation bias affects the decisions we make on a day to day basis.
[20:19] Transitions – Individuals frequently undergo transitions, such as selling a business they have built over the years or acquiring another. Prof. Howe shares his insights on what should be considered during such a transition.
[26:43] More on Biases – Prof. Howe explains the reason behind biases by presenting examples from evolutionary psychology.
[30:00] Reproducibility – One of the trademarks of the scientific method is the ability to replicate an experiment and obtain the same results. Prof. Howe broadly discusses the reproducibility issue in psychological research.
[40:49] Better Decisions – Prof. Howe explains how being well informed on biases can help us making better decisions in the future.
[49:31] The Future – Prof. Howe discusses the current research going in the field, as well as the future of behavioral economics.
[57:59] Research – Prof. Howe shares the current scientific issues that pique his interest.
[01:02:29] Mental Health – Prof. Howe shares his observations concerning the state of mental health in the United States and the way it affects people’s financial decisions.
[01:06:28] Gamblers – Prof. Howe outlines his view on gambling and how this relates to the human capacity for pattern recognition
[01:08:52] Books – Prof. Howe shares several books that are worth reading.
Resources
Connect with Professor John Howe:
LinkedIn: linkedin.com/in/john-howe-1013498/
Newsletter: johnhowe.substack.com/welcome
Mentioned in the episode:
Your body language may shape who you are | Amy Cuddy:
youtube.com/watch?v=Ks-_Mh1QhMc
The Foolish Corner: Avoiding Mind Traps in Personal Financial Decisions:
amazon.com/Foolish-Corner-Avoiding-Financial-Decisions/dp/099851070X
Science Fictions: How Fraud, Bias, Negligence, and Hype Undermine the Search for Truth:
amazon.com/Science-Fictions-Negligence-Undermine-Search/dp/1250222699
Rationality: What It Is, Why It Seems Scarce, Why It Matters:
amazon.com/Rationality-What-Seems-Scarce-Matters/dp/0525561994
Misbehaving: The Making of Behavioral Economics:
amazon.com/Misbehaving-Behavioral-Economics-Richard-Thaler/dp/039335279X
Thinking, Fast and Slow:
amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness:
amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681