We make thousands of decisions every day. Do I cross the road now, or wait for the oncoming truck to pass? Should I eat fries or a salad for lunch? How much should I tip the cab driver? We usually make these decisions with almost no thought, using what psychologists call “heuristics” – rules of thumb that enable us to navigate our lives. Without these mental shortcuts, we would be paralyzed by the multitude of daily choices. But in certain circumstances, these shortcuts lead to predictable errors – predictable, that is, if we know what to watch out for. Did you know, for example, that we are naturally biased towards selling investments that are doing well for us, but holding on to those that are doing poorly? Or that we often select sub-optimal insurance payment plans, and routinely purchase insurance that we don’t even need? And why do so many of us fail to enroll in our employer’s corporate retirement plans, even when the employer offers to match our contributions?
- 5 stars61.55%
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This course was a very good sum up of Daniel Kahneman's thinking fast and slow. Definitely recommend to everyone who would like to know more about our flaws or would like to refresh your knowledge.
Very good course. I learnt about many biases which I often make in making financial decisions and now I hope I will correct those. Cheers to the team coursera for this course
This Course is really helpful to understand what goes inside the mind of investors and how they fall prey to the biases that may not work out in their favor in the long run.
The Courses tell us about about a number of biasis using good example. It would have been much more interesting if biases were explained using more example of bubbles and crisis.
Will I receive a transcript from Duke University for completing this course?