The Academic Evolution of Behavioral Finance and its Practical Implications for Advisors

Research has revealed that the human brain struggles to cope with complexity. One of the most important insights from the discipline of behavioral economics is the idea that much of human decision-making is controlled by nonrational, automatic mental shortcuts known as heuristics. Here, Ken and Scott discuss the latest information on narrow framing, how to help clients manage complexity and the challenges that advisors face when managing their own complicated businesses.

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