torquer
05-23-2008, 10:33 AM
Ever feel like you're bidding against a bunch of monkeys on flea-bay? After my wife forwarded this message, I wonder if Professor Chen could offer some insight.
Breaking News updated 5.23.08
Register for Fuzzy Day or download this PDF flyer to post in your office and share with your colleagues. FREE one year membership in SQA is included with non-member registration to Fuzzy day!
Trading Behavior of Non-human Primates
M. Keith Chen
Behavioral finance and economics have demonstrated systematic decision-making biases in both lab and market data. Do these biases extend across contexts, cultures, or even species? We investigate this question by introducing fiat currency and trade to a colony of capuchin monkeys, and recovering their preferences over a range of goods and gambles. We show that capuchins react rationally to both price and wealth shocks, but display several hallmark biases when faced with gambles, including reference-dependence, loss-aversion, and risk-reflection. Given our capuchins' inexperience with trade and gambles, these results suggest that loss-aversion extends beyond humans, and may be innate rather than learned.
Check out the full Fuzzy Day schedule for details on all the speakers and their presentations!
Copyright © 2008 Society of Quantitative Analysts. All rights reserved. Contact us at 800-918-7930.
Breaking News updated 5.23.08
Register for Fuzzy Day or download this PDF flyer to post in your office and share with your colleagues. FREE one year membership in SQA is included with non-member registration to Fuzzy day!
Trading Behavior of Non-human Primates
M. Keith Chen
Behavioral finance and economics have demonstrated systematic decision-making biases in both lab and market data. Do these biases extend across contexts, cultures, or even species? We investigate this question by introducing fiat currency and trade to a colony of capuchin monkeys, and recovering their preferences over a range of goods and gambles. We show that capuchins react rationally to both price and wealth shocks, but display several hallmark biases when faced with gambles, including reference-dependence, loss-aversion, and risk-reflection. Given our capuchins' inexperience with trade and gambles, these results suggest that loss-aversion extends beyond humans, and may be innate rather than learned.
Check out the full Fuzzy Day schedule for details on all the speakers and their presentations!
Copyright © 2008 Society of Quantitative Analysts. All rights reserved. Contact us at 800-918-7930.