In this book, Robert J. Shiller examines the forces that drive market volatility, including cultural, psychological, and structural factors. He discusses how events such as technological advancements and demographic changes can precipitate market bubbles, and how these bubbles are reinforced by media coverage and 'new era' economic thinking. The book also explores psychological anchors and herd behavior, as well as attempts to rationalize market exuberance through theories like efficient markets and random walks. Shiller provides prescriptions for policy changes and investor strategies to mitigate the effects of speculative volatility.
The novel follows Alex, a 22-year-old woman who, after a misstep at a dinner party, is dismissed by her wealthy boyfriend Simon and left to fend for herself on Long Island. With limited resources and a waterlogged phone, Alex uses her ability to navigate the desires of others to stay on the island. She drifts through the lives of the wealthy, creating different personas to survive, while leaving a trail of destruction. The book explores themes of economic survival, the commodification of desirability, and the complexities of Alex's morally ambiguous actions. Written in the third person, the narrative captures the tension and atmosphere of Alex's precarious existence[1][3][5].
The book follows the lives of individuals, particularly the McCullough family, living on the corner of Fayette Street and Monroe Street in West Baltimore. It examines the sinister realities of inner cities, the failures of law enforcement policies, moral crusades, and the welfare system, and highlights the poignant scenes of hope, caring, and love amidst the drug culture. Simon and Burns spent over a year interviewing and following the people of the neighborhood, providing a detailed and non-judgmental portrayal of a community in deep decline.
This book marks the first substantial and authoritative effort to bridge the gap between traditional game theory and how average people with emotions and limited foresight actually play games. Colin Camerer uses hundreds of experiments to develop mathematical theories of reciprocity, limited strategizing, and learning, which help predict what real people and companies do in strategic situations. The book covers various strategic interactions such as bargaining, games of bluffing, strikes, price competition, and building reputations. It is a must-read for anyone seeking a more complete understanding of strategic thinking, from professional economists to scholars and students in economics, management studies, psychology, political science, anthropology, and biology.
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Barry Ritholtz speaks with Colin Camerer, Robert Kirby Professor of Behavioral Finance and Economics at California Institute of Technology. Prior to joining Caltech in 1994, Camerer was a faculty member at various institutions including the University of Chicago GSB and the Kellogg Graduate School of Business at Northwestern University. He also held a visiting professorship at Oxford University. He is a member of the American Academy of Arts and Sciences and holds fellowship at the Econometric Society, and the Society for the Advancement of Economic Theory. Camerer has also authored numerous academic papers and books, like "Behavioral Game Theory: Experiments in Strategic Interaction."
On today's episode, Barry and Colin breakdown the behaviors that drive our financial decision making.
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