November Newsletter - 2018
- Mitraz Knowledge
- Nov 30 2018
KNOWLEDGE - INCENTIVE CAUSED BIASSymptoms - It is said that one should not ask the barber the need for a haircut. People with a vested interest will tend to direct you or make you eliminate every other route and guide you in the direction of their interest.An example - In a paper "Misled and mis-sold: Financial misbehaviour in retail banks?" by Monika Halan and Renuka Sane presented on 5th Aug 2016, auditors approach banks for advice on tax saving instruments. The private sector banks with high sales...
October Newsletter - 2018
- Mitraz Knowledge
- Oct 31 2018
KNOWLEDGE - HINDSIGHT BIASSymptoms - When finally after the outcome of an event, one tries to simplify the causes and effects of a complex situation (complex because the actual outcome was clearly not expected to happen) and starts to assume better predictive ability after linking something important before the event to the result.An example - R.Beyth and B.Fischhoff devised the first experiment directly testing the hindsight bias. They asked participants to judge the likelihood of several outcomes...
