Capital Allocators – Inside the Institutional Investment Industry Dan Ariely – Investing in Irrationality (Capital Allocators, EP.93)
Apr 1, 2019
Dan Ariely, a leading behavioral economist and author, dives into the fascinating intersection of human behavior and investing. He discusses how insights into corporate culture and employee motivation play a crucial role in long-term financial success. Ariely shares transformative journeys from adversity, touching on pain management misconceptions and the mind-body connection. He emphasizes the importance of treating human capital as a key asset, advocating innovative compensation structures that prioritize genuine care for employees and exploring how this impacts investment strategies.
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Origin of Research
- Dan Ariely's interest in behavioral economics stemmed from his experience with burn injuries and pain management.
- Nurses' quick bandage removal method maximized pain, contradicting his intuition and inspiring research.
Research Origins
- Research can be sparked by curiosity about bizarre phenomena or directed towards solving specific problems.
- Dan Ariely's curiosity about placebos stemmed from observing a fellow patient's pain relief from a placebo injection.
Kibera Savings
- In Kibera, a coin with numbers for scratching motivated savings more effectively than 20% matching incentives.
- This highlights the power of making savings visible and tangible, combating the invisibility of modern saving methods.