Nicholas applies cognitive and social psychology to understand why investors make the decisions the make, despite evidence often suggesting they shouldn’t. An acclaimed academic and expert in behavioural economics he has studied areas including the financial crisis and long-term decision-making.
Nicholas Barberis is Professor of Finance at the Yale School of Management and an acclaimed specialist in behavioural finance, exploring the applications of cognitive psychology in analysing the behaviour and decision-making in investment and asset trading.
From a starting point of looking at the movement of stocks and shares, Nicholas examines the part irrational thinking plays in market movement. Using cognitive and social psychology he considers why active investors are often outperformed by passive, longer-term investors. Why do people think the odds don’t apply to them and that they’re the exception to the apparently obvious rule? By understanding the psychology of overconfidence and why buyers think they know something the seller doesn’t, he suggests what organisations can learn about groups and individuals, what influences them, and why they act the way they do.
A career academic, British-born Nicholas was educated at Cambridge and Harvard before taking up posts at Harvard, the London Business School, and the University of Chicago. He’s been awarded a host of honours and fellowships for his research and teaching work.
An award-winning writer, Nicholas’ articles in academic and other publications have covered the psychology behind the 2007/08 financial crisis, the nature of gambling, biases and preferences, and long-term decision-making
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