Thinking Fast And Slow By Daniel Kahneman

Thinking Fast and Slow by Daniel Kahneman
THINKING, FAST and SLOW– Book Project
Thinking, fast and slow written by an empirical researcher and psychologist, Daniel Kahneman, The
book tells us how we can afford to think while we're not even paying attention. It offers us the paths
to better understanding ourselves, how to think automatically and common, instead of difficult and
rare.
The book starts by clarifying the two fundamental modes of thought: 'system–1 (the fast thinking
system) and 'system–2' (the slow thinking system). System–1 is fast, automatic, effortless, and
intuitive. And it cannot be turned–off. While, system–2 is slow, effortful and lazy. But in all,
system–2 is a very supportive system.
Ranking the book between 0 and 10; I will give the book a good 8.5/10. It's simply a lovely book;
amongst all other self–help or pop–psychology books I think Thinking fast and slow is the
Godfather.
The book is divided into 5 parts, and each part is further divided into sections. The short sections
make it easy to read, easy to access and navigate around. I wished I read it very slowly. I will surely
recommend it to friends, and people that want to be aware of their motives.
TWO SYSTEMS
A good portion of part 1 is spent telling us about the two systems, system–1 and system–2. System–
1 operates automatically and quickly with no effort applied to it. While system–2, allocates attention
to effortful mental computation.
Daniel Kahneman points out that there are not too many fundamental ways of thinking or
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The Prospect Theory, A Behavioral Economic Theory
Prospect theory is a Behavioural Economics Theory which tries to understand how people take
decisions in terms of two alternatives, which have a probabilistic nature. These decision making
processes and their respective outcomes also involve risk. An important point of the Prospect Theory
is that it considers the fact that the outcomes of the alternatives are known. The basic idea behind the
theory is that people base their decisions on potential gains and losses, rather than thinking about the
final outcome. The theory is of the idea that people make such decisions about gains and losses with
the help of heuristics. The theory has been very critical in its application as it tries to bring forth a
model which is much more realistic in nature, ... Show more content on Helpwriting.net ...
In the equation, xi refers to the total number of possible outcomes and pi shows the probability of
those respective outcomes. In the equation w is referred to as the weighing function for the
probabilities which therefore shows that people tend to overreact to certain situations of smaller
probability as compared to larger probabilities.
MAJOR FEATURES
1) The coefficients of values are just gains and losses which are not to be confused with final wealth.
2) The model is able to represent greater sensitivity towards losses as compared to gains.
3) The function is convex for losses that would occur out of the possible outcomes and concave for
any sort of gain.
4) Weighing function helps to overweigh smaller probabilities.
APPLICATIONS OF PROSPECT THEORY
Barberis (2013) paper is a review of the applications of Prospect Theory. As some argue that the
Prospect Theory only works well under a laboratory setting, the author has other ideas to share.
According to Barberis, Prospect Theory is just not well made to be directly applied. The paper is
able to trace down the various advancements that have come up in terms of Prospect

Evaluating The Options On A Scale Of Utility
Introduction Myriad decisions affront us every day. Each decision is decomposable into sub–
decisions. For instance, consider the mental turmoil (or apathy) required to determine whether you
shall go grocery shopping. First, you determine an initial need for grocery shopping (i.e., you are out
of milk, eggs, etc.). Next, you consider what you would rather do––an evaluation of utility. This
cost–benefit analysis continues until shopping or staying is perceived with marginally greater utility.
Though these calculations require a second or so in your mind, in decomposing this choice, one
finds a series of individual decisions contributing to the final. These sub–decisions may "How much
is milk worth my going to the store?" or "How much does this television show dissuade me from
going to the store?" However, one can go deeper still. In answering each of the above sub–questions,
you subconsciously evaluate the options on a scale of utility. Consider this concept though: for any
arbitrarily selected value on that scale, you must subconsciously "decide" if the value is
satisfactory–a boolean decision (see Fig. 1). Additionally, all but the lowest layer of sub–decisions
are considerable as independent decisions in different contexts. Accordingly, these decisions are
likewise decomposable to final boolean decisions, assuming all high level "decisions" are
decomposable. Also note these boolean decisions are never consciously considered in first order as
that requires additional levels

Future Prospects For The Future
What are the future prospects for work in Canada?
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Course
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Tutor
Date
Introduction
There are various things which are likely to work in the future Canada. One of the key issues which
will be discussed in this paper about the future of work in Canada include globalization. Several
models will be discussed in this paper about the sustainability of work in the face of the increasing
pressures within the limits of work and also the available resources which are ready to be exploited.
In this paper, a discussion about the determinants of future work, fairness and justice in the Canada,
the dominance of the capitalistic principles, new economic models emergence, and the technological
evolution are some of the factors which will be discussed in this paper in relation to the future
prospects of Canadian work. In addition to all those factors influencing the future of Canadian work,
other areas which will be discussed in this paper include the impact of the unions on work and the
workers, the inequality in work places, insecurity at work, the health impacts of work and its
environment and also the organization of work in Canada.
The overall Canadian industry and work operate in the context of free trade and also globalization.
The increase in integration and economic interdependence has no effect on many economies,
including the Canadian economy. The integration has instead strengthened the nation which makes it
to stand out. Opening up new

Example Of Prospect Theory
Prospect theory is a theory of decision making under conditions of risk. The theory is best known
for its hypothesis that individuals are risk–averse with respect to gains and risk–acceptant with
respect to losses and for its emphasis on the importance of the actor's framing of decisions around a
reference point.
Prospect theory is one of a number of alternative theories of individual choice that behavioral
decision theorists have constructed in an attempt to integrate observed anomalies in expected–utility
theory into a more descriptively accurate theory of choice using an S–shaped value function. The S–
function curve of the value is derived from the experimental results and lacks a complete theoretical
explanation. But Tversky and Kahnemen ... Show more content on Helpwriting.net ...
Prospect theory is considered "substantive rationality" rather than "procedural rationality."
Substantive rationality is the optimization of a given goal under given conditions and constraints,
and is a function of goals and situational constraints but not intervening reasoning process. While
procedural rationality focuses on the decision–making process. Therefore, the prospect theory
cannot be adapted to the "cognitive–rational debate". The evaluation stage in the prospect theory is
more similar to the rational economic theory. But it is the theory editing and framing have more in
common with cognitive process theories. To conclude, the prospect theory research program is a
limitation of the theory but not a fatal flaw.
Shortcomings of Prospect Theory
a) The descriptive generalizations on which prospect theory is based emerge from static conditions
of experimental research in highly structured, non–interactive laboratory settings make it difficult to
extrapolate its findings to the complex world of international relations where the consequences of
one's actions are partially a function of the actions of another.
1) It is extremely difficult in the real world to identify whether an actor selects a particular option
because of framing, loss aversion, or any other anomalies of expected–utility

The School Drop Out Phenomena
In Uruguay, between one out of three and one out of four children that enroll in secondary school do
not graduate. For a country that used to exhibit high education levels and more than tripled its
education expenditure per student in the last ten years, being just above Latin American standards
appears as anything but a success.
Several studies dug in the cause and nature of such an evolution. One particular finding called for
the attention of researchers: the probability of an adolescent leaving their studies exhibit two peaks,
one at 15 years old and the other at 18. There seems to be a period of relative calm between ages 15
and 18 in terms of school dropping. (1)
Quite an odd shape for that process. Why is it that student feelings about education along the
adolescence present this U shape? Are subjects being taught in those particular years less interesting
than others? Are them more difficult? Why such an important and long term decision goes back and
forth during adolescence?
The school drop–out phenomena has been widely researched but it still remains in the shades.
Pouring money into the education system does not seem enough to solve the issue. Despite efforts of
teachers some children still underestimate the benefits of studying. Or at least they do not feel the
payoff big enough for the effort they do.
A humongous amount of hard data proves that for teens it is not a wise decision to abandon their
studies. Nevertheless, simply telling them that, does not change

Overview of Behavioral Economics Essay
Behavioural economics is the study of the effects that psychology has on the decision making of the
economy. This tends to be the way that people think and feel when they are spending money on a
certain good or service. The great economist Adam Smith was the first follower of this idea through
his book "The theory of moral sentiments" which dates back to 1759. However, it took over 100
years to get a more clarified meaning of how big of a role the psychology of a buyer plays in
economics. In behavioural economics there are seven basic principles which all contribute to the
decision making process. Behavioural economics can explain how people will react to different
situations such as times when there are no economic problems and times when ... Show more
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In other words most people would prefer to pay more and buy a more expensive product thinking
that by paying more it is also superior to the other products of the same category that are cheaper.
However, although the phrase "you get what you pay for" might have some validity in it that is not
always the case, due to the fact that sometimes the products that might be cheaper are just as good as
the competitor brand which has a higher price. In this instant it would be logical to buy the cheaper
product however most human beings would opt for the expensive product, assuming that it is of
better quality than the cheaper product. On the other hand, Dan Ariely rebuffs this claim and states,
"We choose what we like, not what's best." Sometimes humans don't make decisions based on their
preferences; instead they choose what they want and that leads to a process of rationalisation in
order to get what they really want. However, they still want to give the impression that they were
acting according to their preferences. Secondly, the framing effect states that presenting the same
option but in a different format can change people's decisions. Plous (1993) states that, "individuals
have a tendency to select inconsistent choices, depending on whether the question is framed to
concentrate on losses or gains." A good example of when framing is apparent is when stores
advertise sale on their products. For example two stores both sell the same product which is priced
at £50

The Concepts Of Human Psychology
With each choice you take, each judgment you make, there is a conflict in your psyche; a fight
amongst instinct and rationale. Moreover, the instinctive piece of your brain is significantly more
intense than you may might suspect. The vast majority of us get a kick out of the chance to believe
that we are equipped for settling on sound choices. We may on occasion depend on our gut nature,
however in the event that essential we can approach our forces of motivation to touch base at a
consistent choice. Usually, we surmise that we have purposes behind what we trust, that is
frequently a misstep.
Prof Daniel Kahneman, from Princeton University, began an inquiry in our comprehension of the
human personality. It's a deep quest and ... Show more content on Helpwriting.net ...
This quick state of mind is staggeringly effective, yet completely covered up. It is so intense, it is
really in charge of the vast majority of the things that you say, do, think and accept. We are
constrained, we are not immaculate, we are nonsensical in a wide range of ways but then you have
no clue this is going on. This framework is your concealed auto–pilot, and it has its very own brain.
It is sometimes known as the outsider inside. More often than not, our quick, instinctive personality
is in charge, proficiently assuming responsibility of the considerable number of thousands of choices
we make every day. The issue comes when we permit our quick, instinctive framework to settle on
choices that we should disregard to our moderate, consistent framework. This is the place the
oversights sneak in.
Our reasoning is loaded with efficient errors referred to clinicians as intellectual predispositions and
they influence all that we do. They make us spend incautiously, be excessively impacted by what
other individuals think. They influence our convictions, our sentiments, and our choices, and we
have no clue it is going on. It might appear to be difficult to accept, yet that is on the grounds that
your intelligent, moderate personality is an ace at imagining a main story. The majority of the
convictions or suppositions you have originated from a programmed reaction. In any case, at that
point your legitimate personality designs a

Future Of Terrorism And Its Future Prospects Within Pakistan
FUTURE OF TERRORISM IN PAKISTAN
1. The threat of terrorism which existed prior to 9/11 got accentuated and transformed into a potent,
dynamic and multi–dimensional phenomenon. As of today, few countries in the world are threatened
by such diverse forms and manifestations of terrorism as we are; both in the present and futuristic
context. There are external influences and there are internal dissentions. While the vested interests
of the regional and global players denote one facet, the socio–political fault lines that exist within,
constitute the other dimension of the problem. Finally a large array of foreign and Pakistan based
terrorist organizations with varying agendas; add yet another angle to this complex matrix. The
threat of terrorism is thus, dangerous and challenging, but by no means insurmountable. It simply
merits realism in analysis, craft and far sightedness in working out the response and boldness in
execution.
2. This paper will provide a definition of terrorism, then it will explore the evolution of terrorism
and its future prospects within Pakistan, will carry out the analysis of counter terrorism strategy of
Pakistan and finally recommend the way forward.
3. . Terrorism is an old phenomenon, yet it remains undefined to date. United Nations itself has not
been able to come up with a definition for the term terrorism and as such the international body at
best has been using the word very loosely. As per JR Global security resources (2007), there are

Psychological Theories Of Behavioral Finance
Behavioural Finance
Introduction
Behavioural finance is a relatively new area of evolving research in finance. Behavioural finance
seek to combine behavioural and cognitive psychological theory with conventional economics and
finance to get a better understanding for why individual investors make irrational financial
decisions.
According to Sewell (2007), "Behavioural finance is the study of the influence of psychology on the
behaviour of financial practitioners and the subsequent effect on markets." The science focuses on
the effects of individual investors making decisions based on "hunches or emotions."
Ritter (2003, p.429), describes behavioural finance is based on psychology which suggests that
human decision processes are subject to several cognitive illusions. These illusions are divided into
two groups as illusions caused by heuristic decision process and illusions rooted from the adoption
of mental frames grouped in the prospect theory (Waweru et al., 2008, p.27)
People may make predictable, non–optimal choices when faced with difficult and uncertain
decisions because of heuristic simplification. Behavioral biases, abstractly, are defined in the same
way as systematic errors are, in judgment (Chen et al, 2007).
Behavioral finance theories, which are based on the psychology, attempt to understand how the
psychological variables (heuristics, prospect, and herding) and perceived risk behaviour (Risk
Perception, Risk attitude and Risk Propensity) influence individual

Pakistan: Recent Economic Developments and Future Prospects
PAKISTAN: RECENT ECONOMIC DEVELOPMENTS AND FUTURE PROSPECTS ISHRAT
HUSAIN Most of the news emanating about Pakistan in the Western media relate to terrorism,
bomb blasts, Islamic fundamentalism, nuclear non proliferation, military rule etc. Seldom does one
see a positive story appearing about Pakistan's remarkable economic turnaround. But the fact of the
matter is that despite such negative image Pakistan is one of the favored destinations for foreign
direct investment. Foreign direct investment flows have surged by 95 percent during July – February
2007 and are expected to touch $ 5 billion or 3.5 percent of GDP – several times higher than FDI
flows to our large neighbor in relative terms. Pakistan's international bond issues and ... Show more
Economic growth rates have risen from 1.8 percent in 2000/01 gradually to average 6 –7 percent a
year in the last four years making Pakistan one of the fastest growing economy in the Asia region.
For Pakistan these rates are not spectacular but a reversion to mean. The average growth rate of
GDP over 50 year period of Pakistan has been 5.2 percent per annum. Manufacturing sector output
growth was over 15 percent, exports have doubled in US dollar terms in these five years, and an
open trade regime has allowed imports from all over the world to triple. Tax revenues have risen by
14 percent a year reducing fiscal deficit which used to average 7 percent a year in the 1990s to
average 4 percent. Current account turned around from chronic deficit to a surplus for three
successive years mainly due to renewed export growth and resurgence of workers' remittances.
Although it has become negative since 2005/06 due to phenomenonal growth in imports of
machinery and equipment and increase in world oil prices it is being fully financed by foreign
capital flows. Inflation rate during the first four years of the current government remained below 4
percent but oil price pass through and food shortages have led to 8 percent on average since 2004–
05. External debt burden has been halved from 52% to 26% of GDP and is projected to be on a
declining path. The country's capacity to service its

Financial Statement Analysis : Financial Assessment And...
INTRODUCTION Different segments of the general public are keen on data about the present
budgetary positions and future prospects of business undertakings. Presently the people perhaps
straightforwardly identified with the enterprise, or they may be keen on securing relations with the
same instantly. Their essential target is to choose whether they will keep up, reinforce, or break their
current relations with the business undertakings.
Various proclamations readied toward the end of each bookkeeping period to survey Financial
Activities and Financial position of a worry are altogether called Financial Statements. They consist
of the following:
Income Statement
Balance Sheet
Cash Flow Statement
Fund Flow Statement
On the premise of the data uncovered in Financial Statements, clients of these come to think about
the development, productivity, dissolvability, and monetary quality of an undertaking.
Monetary Statement Analysis is an investigation which discriminatingly looks at the relationship
between different components of the Financial Statements with a perspective to acquire vital and
compelling data from these. It a methodology of filtering Financial Statements for assessing the
relationship between the things as revealed in these. It is fundamentally a posthumous of the value–
based exercises of a venture as unveiled in the Financial Statements in order to judge operational
capacity, capacity, gainfulness, dissolvability, managerial effectiveness and

Global Energy Propects : Challenges And Future Prospect
TITLE GLOBAL ENERGY PROPECTS:CHALLENGES AND FUTURE PROSPECT The world is
confronting energy destitution – absence of access to power, advanced vitality administrations and
mechanical power .Quarter of the total populace still lives without power, or different types of
present day vitality administrations, while as much as 33% of aggregate humankind depends on
conventional biofuels, for example, bovine manure or kindling .It brings about extraordinary cost to
wellbeing or economic welfare and security .The world additionally confronting twin vitality related
danger : that of not having satisfactory and secure supplies of energy at moderate costs and that of
ecological mischief brought on by its utilization. Reasonable vitality assumes a key part in financial
development and human advancement and taking off vitality costs and late geopolitical occasions
have helped us to remember the defenselessness of the worldwide vitality framework to supply
disturbances. Protecting energy supplies is by and by at the highest point of the worldwide strategy
motivation. The present example of energy supply conveys the risk of extreme and irreversible
ecological harm. So the objectives of energy security and natural insurance requires solid and
composed government activity and open support. The world 's vitality needs will develop
significantly more steeply from now than whenever since the start of the modern unrest. The number
of inhabitants in the industrialized world generally devour

The Future Prospects Of Norway
In order to discuss the future prospects of Norway for the coming years, it is interesting and useful
to review the performance of the country in the past to identify possible trends.
At the end of 2013, Norway was calculated as having the second highest GDP in the world (only
under Luxembourg), as it was 65,515 US dollars per capita. The following graph (Chart 1 – see
appendix) shows the growth in Norway's GDP from 1970. Here, we can see the effect of the
recession in 2008, and how it reflected on the downfall of the GDP's value. Only until 2010 is where
we see the value become even with the pre–crisis number. Yet, according to Figure 1 (below), the
index shows that it has not yet reached the value that it would have, following the trend prior to
2008.
Figure 1. Norway's Gross Domestic Product. The graphic shows the growth of GDP for Norway in
red, Luxemburg in black and the rest of the OECD countries in grey.
Source: OECD, 2014
Apart from GDP, there are also other indicators that can give us an impression of the economic
performance of Norway in the past years. For instance, in 2013 the long–term unemployment rate
was 9.3% and the overall trend suggests it may continue to go down (Appendix 1, Chart 1). This
refers to those in unemployment that are aged 15 and over, were without work during the reference
week, yet were available for and actively seeking for work during the previous four weeks.
Moreover, the inflation and long–term interest rates

Disposition Effect Essay
Abstract
Many stock market anomalies could not be explained by Efficient Market Hypothersis (EMH). The
psychological biases, such as disposition effect, might help in explaining some of the behavioural
anomalies. Many researchers found that the presence of abundance of disposition–prone investors
could affect the market prices. However the underlying causes of disposition effect is still unclear.
Introduction Disposition effect is an anomaly that relates to the investors's propensity for selling
shares that have increased in value and holding shares that have decreased in value (Financial Times
Lexicon, 2016). The S–shaped prospect theory value function is expressed in terms of gains or
losses where the risk aversion in the domain of ... Show more content on Helpwriting.net ...
The investors might have different trading strategies for small stocks and large stocks. The investor
psychology have led to heterogeneity in investors' beliefs might exhibit behavioral biases, which
could result in irrational trading decision–making.
The Underlying Causes of the Disposition Effect and the Implications of Disposition Effect in
Financial Decision Making Most of the past research has linked the disposition effect to prospect
theory. Barberis and Xiong (2009) mentioned that prospect theory is a potential ingredient in
providing a pure preference–based explanation for this effect. Under prospect theory, people are
strongly avoiding losses in order to obtain gains due to loss aversion. Investors are reluctant to
realise losses because they seem to feel the pain of loss more strongly than gains (Kahneman &
Tversky, 1979). Therefore, people hold the losers because it is believed that they are more
comfortable with 'paper loss' rather than 'realised loss' (Barberis & Xiong, 2009). However, Kaustia
(2010) argued prospect theory value function is unrealistic to explain disposition effect as people do
not sell the stock following small gains in reality. He found that the people are more likely to hold
the stock when the gains are 70% or more, and the propensity to sell soared when the capital gain is
zero. Despite of that, prospect theory would be a potential explanation for the disposition effect (Li
& Yang, 2013). Some researchers have

In the modern finance theory , behavioral finance is a new...
In the modern finance theory , behavioral finance is a new paradigm , which seeks to appreciate and
expect systematic financial market influence of psychological decision making ( Olsen R A, 1998).
In the recent studies irrationality in the decision making was revealed , based on certain cognitive
limitations. The present chapter is divided into two aspects
According to traditional models in finance and economics, human beings are rational while taking
their decision. However the recent studies explain that decision making is based on certain cognitive
limitations. As the information's are overloaded, we will be applying certain short cuts or heuristics
in order to take a decision. The most important heuristics in the representativeness ... Show more
Essentially, behavioral finance attempts to explain the what, why, and how of finance and
investment, from a human perspective" (See figure 2). (Shefrin, 2000) however, mentioned the
difference between cognitive and affective (emotional) factors: "cognitive aspects concern the way
people organize their information, while the emotional aspects deal with the way people feel as they
register information" . Figure 2 The Underpinning of Behavioral Finance
Source: (Victor Riccardi & Helen K Simon, 2000)
PSYCHOGRAPHIC MODELS
Models are designed to classify people according to certain characteristics, tendencies or behavior..
Psychographic classifications are particularly relevant with regards to individual strategy and risk
tolerance. The useful models of investors psychographic were Barnewall (1987) and Bailard, Biehl
and Kaiser (1986).
Barnewall Two way model (Barnewall, 1987)
This is one of the most previous and most prevalent investor model based on the work of Marilyn
MacGruder. Barnewall distinguished the investors into two types : passive investors and active
investors.
Passive investors are those investors those who have become wealthy passively –by inheritance or
by risking the capital of others rather than their own capital. They have a greater need for security
than they have tolerance for risk. Occupational groups such as corporate executives, lawyers,
Chartered Accountants,

Affordable Care Act: Article Analysis
This essay will be reviewing two articles talking about the Affordable Care Act. One article was
written and posted on The American Prospect(Citation) and the other was written and posted on The
American Spectator(Citation). This essay will explore the differing viewpoints and opinions of the
these online publications and how they affect the articles they post.
When someone writes an article, it is often done from a specific viewpoint(Book). A view point can
be described as a way of thinking and speaking about a specific topic (book). In politics, two
common view points are the Left and the Right (Book). The left is often associated with a liberal
minds set and the right is often associated with a conservative mindset (book 205). There ... Show
more content on Helpwriting.net ...
When the author writes about a potential negative, they does so in a positive light. This is akin to an
interview and the question about a failure is asked. A smart answer is to answer in a way that makes
the failure ends up being a positive. The articles notes that the program had a lot of issue during the
initial launch, with low enrolment numbers, but notes that it now covers millions of people (CITE).
The article likens the Affordable Care Act with other government programs like Social Security and
Medicare and how there has been multiple reforms with these programs (CITE). The article details
that the Affordable Care Act will also need reform to make it work, but that reform can make it
successful. At the same time that success is linked to a Democratic President winning the
nomination, as a Republican President will cause it to fail

Prospects For Future Study
Recommended Revisions As this project is brought to a close, a reflection can be made on what
should be done differently. The project did not struggle with a timeline or gathering information on
soldier suicides at the state level. The project did not suffer from lack of participation by chaplains
who heard the initial phase 1 introduction to CALLS training and enlistment for more information.
However, the Project Director acknowledges that there was an underestimate to the sheer volume of
information that the Bible has on the topic of suicidality. Characters throughout the Old Testament
could have been discussed or added to the training. This was seen as being too time consuming and
would have taken the project much further off of the ... Show more content on Helpwriting.net ...
This would allow senior pastors or other leaders to train ministers to be better pastoral counselors in
their own churches with people who have nothing to do with the military. Even if the work of this
dissertation is not adapted to the civilian world by other students or by future implementation of the
Project Direct, the training is still of value to the Arkansas Army National Guard. The next step for
this training is the continuation and deepening of the topics by the state's 4 brigade chaplains. Each
chaplain is responsibly to develop a yearly training plan for their subordinate ministry teams. 2 of
the 4 brigade chaplains plan to evaluate CALLS training and then write their own additions which
address areas they are specifically seeing among their smaller population of troops. This means that
CALLS will be even more specialized and precise for the soldier needing to receive pastoral
counseling from their chaplain. Furthermore, the Project Director could make this a required new
training for all chaplain candidates in the state prior to them going to a battalion ministry for
observation. Application beyond the state of Arkansas is easily achievable. Two areas remain open
for an immediate impact on chaplains across all components but specifically

How Much Is Milk Worth My Going At The Store?
Introduction Myriad decisions affront us every day. Each decision is decomposable into sub–
decisions. For instance, consider the mental turmoil or apathy required to determine whether you
shall go grocery shopping. First, you determine an initial need for grocery shopping (i.e., you are out
of milk, eggs, etc.). Next, you consider what you would rather (an evaluation of utility) do. This
cost–benefit analysis continues until going seems to bring greater utility or until staying does.
Though these calculations require a second or so in your mind, in decomposing this choice, one
finds a series of individual decisions contributing to the final. These subdecisions may "How much
is milk worth my going to the store?" or "How much does this television show dissuade me from
going to the store?" However, one can go deeper still. In answering each of the above subquestions,
you subconsciously evaluate the options on a scale of utility. Consider this concept, though: for any
arbitrarily selected value on that scale, you must subconsciously "decide" if the value is
satisfactory––a boolean decision (see Fig. 1). Additionally, all but the lowest layer of subdecisions
are considerable as independent decisions in different contexts. Accordingly, these decisions are
likewise decomposable to final boolean decisions, assuming all high level "decisions" are
decomposable. Also note these boolean decisions are never consciously considered in first order as
that requires additional levels of

Internal And External Factors That Affect The Company's...
All in all, the company's financial position is very bad in 2015, which was quite well in 2014 and in
2013. 2014 was assumed as the best year with respect to net profit and cash flow from operating
activities. On the other hand, year 2015 was well in financing activities only. Similarly, 2013 was
the year when the company achieved best assets and equity amount in comparison of past three
years and it also played well cash flow from investing as the rest of the year were with the higher
negative amount. The main objective of the paper is to evaluate the influence of external factors on
the company's future prospects. Therefore, this part of the assignment will evaluate the Tesco's
future prospects in terms of prediction of future success or failure will be done in this part of
assignment. This part of assignment will also explain the internal and external factors that affect the
financial position, financial performance, and share price of Tesco.
Discussion
Taking into consideration of analysis from Part 1 of the assignment, it can be said that Tesco's
financial position in 2015 is not good at all since it is paying–off its liabilities from the little profit
that is gained. On the other hand, from the statistical portal of 2015, it is found that Tesco is still on
highest position among the UK's top grocery supermarket. This aspect shows that Tesco is still
popular among its loyal customers and has the highest market share in the industry.
It is noted that market

Potential Explanations Paper
Potential Explanations
US – Israeli relations often appear to focus on America's ability to enforce its sphere of influence in
Israel by its diplomatic and monetary utility. Since 1976, Israel has been the most exponential
annual recipient of US aid and the largest recipient of cumulative US assistance since World War II.
The US had provided over 95% of economic development assistance and food aid to Israel, totaling
to roughly $68 million per year between the years of 1949 and 1965. From 1966 through 1970 aid
increased to about $102 million to include an estimated military loan increase of 47%. From 1971 to
the present, US aid to Israel has averaged over $2 billion per year; two– thirds of which has been
military assistance (Sharp,2015). The ... Show more content on Helpwriting.net ...
The Prospect theory may help explain these anomalies. This theory provides a framework for the
evaluation of alternative choices made by individuals, firms and organizations. The first case to be
examined is the Israeli invasion of Lebanon in 1982 which is exemplary of Israel's occasional
nonconformity to US requests. In summary, Israeli Defense Forces (IDF) invaded Lebanon despite
President Reagan's execution of a cease fire. This act of non–compliance beckons the question, why
did Israel accept the risk of having sanctions imposed on them by their primary financier? Or why
didn't the US influence over Israel manifest favorable actions for the US? There is potential for an
explanation by applying the Prospect theory model to the Invasion of Lebanon case study. Israel
initially complied with President Reagan's cease fire initiative until Israel constructed a perception
that benefits would accrue from engaging the perceived threat of the enemy. Israel believed that
while the cease fire was implemented the PLO were strengthening themselves while they, Israel,
was faltering (losses) under the cease fire restrictions. Israel evaluated two alternative choices, the
first choice was to continue compliance with the US cease fire initiative or alternatively, to disregard
the cease

An Analysis of Superdry’ Working Environments and the...
An Analysis of
Superdry' Working Environments and the Future Prospects for the Company
Executive Summary
This report discussess the working environment of Superdry and then offers an analysis of the future
prospective for the company.
Firstly introduce the background of Superdry include establishment, products, performance and so
on. Then Porter's five forces framework is applied to analyse the competitive environment which are
suppliers, customers, competitors and so on. Next Porter's PESTEL analysis is used to discuss the
external environments which Superdry operates in. It focuses on the key factors which can greatly
influence the company. Finally, explore the why Superdry can get a great success as well as the
future ... Show more content on Helpwriting.net ...
Superdry brand is at the heart of the business. It supples T–shirts, jeans, sweaters, joggers, hoodies,
jackets, shirts, rugby shirts, polo shirts, footwear, as well as bags and accessories (SuperGroup.Plc,
2011). Superdry was built in 2003, designed by three men, Julian Dunkerton, Theo Karpathios and
James Holder. They have the unique eyes, and since then that style vision has grown into the
promptly well–known global brand. Superdry arrived on Australian shores in 2006, and quickly
became famous in Australia. It has developed the unique style of Australia. The product of Superdry
is plain, but the designer pays attention to detail. The customers can be surprised at why these guys
can use with a plain T–shirt to give people a strong sense of visual impact in designing. Superdry
already has 43 separate stores in UK, and discounts in 48 department stores, there are Harrods and
Selfridges London. Meanwhile, Superdry has stores in the USA, Australia, Europe, South America
and Asia. It also has own shopping online, which is "Superdry.com". The website mainly sells all of
products and there will be some out–of–season clothes on discount. The online store sells safely and
securely to over 300 countries all over the world, and it offering wonderful customer service and a
hassle–free return's policy. According to a comment of the website, for all its ability to recognize on
the streets, we achieved that we shouldn't know the woman behind these popular designs if we
tripped

The End of Behavioral Finance
CFA Institute The End of Behavioral Finance Author(s): Richard H. Thaler Source: Financial
Analysts Journal, Vol. 55, No. 6, Behavioral Finance (Nov. – Dec., 1999), pp. 12–17 Published by:
CFA Institute Stable URL: http://www.jstor.org/stable/4480205 Accessed: 17/04/2009 10:10 Your
use of the JSTOR archive indicates your acceptance of JSTOR 's Terms and Conditions of Use,
available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR 's Terms and Conditions
of Use provides, in part, that unless you have obtained prior permission, you may not download an
entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR
archive only for your personal, non–commercial use. Please contact the ... Show more content on
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The argumentthat asset prices are set by rational investors is part of the grand oral traditionin
economics and is often attributedto Milton Friedman, one of the greatesteconomists of the century
and one of the greatestdebatersof all time. But the argument has two fundamental problems. First,
even if asset priceswere set only by rationalinvestors in the aggregate, knowing what individual
investors are doing might still be of interest. Second, although the argumentis intuitively appealing
and reassuring, its adherents have rarely spelled it out carefully. Suppose a markethas two kinds of
investors: rational investors (rationals), who behave like agents in economics textbooks,and quasi–
rational investors (quasi 's),people who are trying as hard as they can to make good
investmentdecisions but make predictablemistakes. Suppose also that two assets in this market,X
and Y, areobjectivelyworth the same amount but cannotbe transformedfrom one into the other.
Finally,assume that the quasi 's thinkX is worth more thanY, an opinion thatcould change (quasi
'soften changetheirminds) while the rationalsknow that X and Y are worth the same. What
conditions are necessary to assure that the prices of X and Y will be the same, as they would be in a
world with only

The Impact of Tourism in Greece: Future Trends and Prospects.
DISSERTATION TITLE.
The impact of tourism in Greece: Future trends and prospects.
SUMMARY.
The aim of this study is to investigate tourism impact in Greece into the socio economic life, as well
as for small and big businesses, since tourism is one of the most prominent factors of Greek
development. The findings were very interesting, since it clearly appeared that tourism tendency will
be a very dynamic factor over the next years , therefore, Greece as well as other tourist destinations,
need to invest a great deal of money, human resources and resources in order to maintain its leading
position to the tourist market.
INTRODUCTION Tourism is a dynamic industry, a cross –cutting sector which involves a vast
diversity of products, ... Show more content on Helpwriting.net ...
(http://www.imerisia.gr/article.asp?catid=4666&subid=2&tag=2656&pubid=929107, 12/02/2008.)
Based on the differentiation of tourists needs and wants, as well as the economic crisis which
diminished the buying behaviour, new trends have already been defined: More and more travellers
prefer to visit close to their home, destinations, using their car. People prefer to make a break down
to their holidays into Week ends, three day– vacations. Business trips last vey few days. The
individual tourism is rising, whereas the massive tourism, as well as the organized tour packages are
diminishing. (http://www.sete.gr/files/Ebook/2006/060829OilPaper.doc, 18/01/2008).
Based on the above points, tour operators, cruises and airlines, are going to be influenced, due to
tourists change of behaviour. Nevertheless, there is already a trend showing that in the United States
as well as in Western Europe, there is a tendency in satisfying the most demanding tourists needs
and wants.
As far as Greece is concerned, the last two years, there was a record in arrivals, since the growth has
come up to 34% , whereas there is a 13,5% raise for tourists, due to the new entry of American
airlines, which directly or indirectly link Athens to big American cities. Based on World Trade
Organization of Tourism and Travel, there is an estimation of 15 million international arrivals, in
Greece, over the next few years. Based on that trend, the

Framing Effects the Sales Promotion by Referring to the...
The concept of framing which is a part of prospect theory (Kahneman and Tversky 1979) is closely
related to the formation of reference price in the consumer's mind. Outcomes above the consumer's
reference point are presented as gains and it affects choice, judgment, and risk–taking differently
than the same alternatives which are below the reference point and are coded as losses by the
consumer. In extant literature, there have been efforts to explain the framing effects of sales
promotion by referring to mental accounting theory. Thaler and Johnson (1986) have proposed that
consumers use hedonic rules to edit their mental accounts, therefore when they see a small gain
(e.g., price discount) relative to a big loss (e.g., purchasing cost), they prefer to separate them
psychologically into two different accounts rather than integrate them. This is the silver lining
principle (based on prospect theory) and it also says that utility functions are concave for gains and
convex for losses, and the curve for losses is steeper than that for gains. Because the size of a
promotion is usually small relative to the purchasing cost, consumers should create a new account
for the promotion rather than integrate it into the purchasing cost, regardless of the promotional
types.
This proposed study aims to use mental accounting theory and sales framing concepts to upgrading
promotions and compare the attractiveness of non–monetary promotions versus price discount
promotions in a

Thinking, Fast And Slow By Daniel Kahneman
This distinctive book called, "Thinking, Fast and Slow" by Daniel Kahneman, is one of very few
exquisite readings I've completed so far. Daniel Kahneman is a psychologist in Princeton University,
and due to his research, he won a Nobel Prize in 2002 in economics. In the beginning of his book,
he speaks of our cognitive System 1 and System 2 ways of thinking. System 1 generates feelings,
impressions, and memory. It is very instinctive, automatic, and is considered quick thinking. System
2 on the other hand, is alert during complex problem solving, while dealing with facts and
knowledge, and is attentive while working with difficult calculations. For example, a problem such
as 24 x 13, this takes more time and knowledge to figure out (System 2), rather then recognizing an
emotion from face expressions (System 1). When System 1 is strained, your System 2 steps in to
help you process through that specific instant. Now aside from the psychological portion of this
book, Mr. Kahneman divulges about a consolidated economic analysis with elemental intuitions
from the psychological perspective; such as, luck and skill, overconfidence, risks in the stock
market, factors of success and the decision making process. This book is overall concluded with the
understanding of behavioral economics, which is the social and cognitive components on economic
decisions that are defined by individuals and have consequences that reflect from making those
decisions and taking those risks.

A Study on the Strategic Growth & Future Prospect of E...
Statement of Research Interest A study on the Strategic growth & future prospect of E –Marketing in
India Introduction As per research title 'e–Marketing – The Strategic Growth & Future Prospect in
India' is concerned, it can be stated, that 'this research work is an attempt of contemporary overview
of changing face of Marketing in India. E–Marketing is the new face of these changing phenomena.'
As per general understanding of e–Marketing term is concerned, it is also referred as Internet
Marketing, I–Marketing, Web Marketing, Online Marketing, or, is the marketing of ... Show more
Literature Review The dotcom era has revolutionized the way we do business. Now, products and
services are bought and sold over electronic systems such as the Internet and the amount of trade
conducted electronically is growing at a rapid pace. The emergence of ecommerce has significantly
lowered barriers to entry. Many small business houses are able to sell their wares either through
online auction sites or via large corporate Web sites, and reaping the benefits of exposure such sites
provide. Hence, a competent marketing team that can understand the market and operationally
strategies is vital for the survival of such ecommerce companies. "E–marketing is the result of
technology applied to traditional marketing. It affects traditional marketing in two ways – increases
efficiency in traditional functions, and the technology in e–marketing transforms many marketing
strategies." This in turn will result in new business models that add customer value and/or increase
company profitability. India is rapidly adopting e–marketing and according to a Nasscom report, by
2012, 80 per cent of business done in the country will be through ecommerce. The e–Marketing has
brought many unique benefits to traditional marketing strategy in India, one of which being lower
costs for the distribution of information and media to a global audience. The interactive nature

Daniel Kahneman
In 2002, psychologist Daniel Kahneman won the Nobel Prize in economics. In the early 1970s,
Kahneman and Amos Tversky set out to disassemble an entity of economic theorists, Homo
economicus. Kahneman's main focus was human irrationality. In his career there were three
important phases. At first he and Tversky did a series of experiments in which revealed twenty or
more cognitive biases. They defined these as unconscious errors of reasoning that distort judgment.
Characteristically paired with cognitive biases were anchoring effects which are the tendencies to be
influenced by irrelevant numbers we are exposed to. In the second phase of his career, he and
Tversky showed that when making decisions under uncertain conditions people do not behave ...
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He theorized experienced well–being compared to remembered well–being which is the way that
most researchers relied on to explain happiness. From this he discovered that experienced happiness
was caused by different things that caused remembered happiness. The main component in
remembered happiness dealt with the duration. Commonly in memory a person can remember a
situation in which they were supposedly happy in that moment when it turns out when they
remember it they were not. For example a surprise guest shows up to a person's house that day. In
the moment they are delighted to see that person. But later on when reflecting on that day the person
may realize that the surprise visitor actually messed up their plans for the day which makes them
upset. Though much more research is needed in hedonic psychology, Kahneman's concepts have
laid the foundation for the findings he reports in his

The George Hotel's Prospects for the future
The George Hotel is a controversial project that will bring much needed rejuvenation to a lacking
lower Gibsons. The George though being battled by many will bring much needed employment
opportunities to the sunshine coast. This expansion to our waterfront will also bring with it a boost
in tourism and keep the bustling culture of lower Gibsons alive. With this project comes heavy
opposition from people all over the Sunshine Coast. Many people feel that the design of this project
is not aesthetically pleasing and will not fit in with the "quaint" style of our town. I would like to
pose the question what is the style of this town? Is there a style of architecture that is recognizable
feature of Gibsons or does the the differentiation of all buildings make Gibsons unique. One other
problem that has been posed is the breaking of the OCP height restrictions. The proposed height for
The George is 25 metres which is approximately 8 stories, double the current OCP restrictions.
People worry that if we were to change the rules for one building would other developers run in and
try slip under the rules too. For this town to further flourish we need to think about changing some
of the rules of the OCP to allow projects that will help further our community culturally, and
economically. Economically speaking The George will provide many full and part time jobs for
residents of the Sunshine Coast. A proposed 130 full time and part time in hotel administration,
accounting,

The Second Shift: Current and Future Prospects of The...
The Second Shift Current and Future Prospects of Relationships
As soon as a girl child is born, she is socialized into being caring and loving personality and given
doll houses to play with; in short she is being trained to become a good home maker as soon as she
realizes the gender difference. She is referred to as "a pretty girl" rather than "a tough girl." The
reference is still the same in the society that I was brought up in. The process of socialization and
cultural indoctrination is not much different than during the times of my mother. However, the
difference lies in the fact that we are no more trained to but are psychologically influenced to rank
household chores before career. Despite the changing role of women in a ... Show more content on
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I hardly recall any arguments at home regarding the gender role confusion. It was kind of already
structured and understood. My mother being an ideal home maker never really complained about the
amount of house work she had to do. Brought up in a traditional relationship family, I feel I would
be most comfortable with a transitional relationship. I would be contributing towards the household
income, however I would be the one taking charge of the household and the parenting tasks with my
partner helping out. When women spent more time outside of household, they feel guilty; the feeling
of guilt I believe holds women back from breaking out of the nutshell. The culturally defined gender
role within household is embedded in more than a feeling of obligation.
Arile Russell Hochschild in one of her works "The Second Shift: Working Parents and the
Revolution at Home" attends to the issue of the gender role within household after increased female
labor force participation rate and the unchanged attitude of men towards household contribution
through the second shift in a stalled revolution. She addresses the issue of gender ideology where
the male acts as the only financial contributor to the family and hence identifies himself as the head
of the household. On the other hand the female

Future Growth Prospects in Africa
Africa is a region that has for long been taunted as the dark continent. Years of political cynicism,
proliferation of civil wars and governance mismanagement have negated the growth and
development of the continent. However if the present positive growth patterns and future economic
projections are anything to go by then the continent is set to undergo a massive transformation by
2025. African economies are showing impressive growth, with an average Gross Domestic Product
(GDP) growth forecasted to be 6.3 % in 2013, Africa has become the fastest growing region in the
world, and only a few Asian countries will continue to grow faster than the continent's top
performers. Africa`s growth projections are premised on the backbone of an anticipated educated
young population growth, rising intra–African trade, investments in public–private partnerships and
commodity–based industrialization. This paper gives an impetus to the future prospects of Africa by
highlighting inter alia the present growth trends and envisaged future prospects. It also analyses
what still needs to be done to ensure the envisaged growth projections are realized.
Africa`s population growth is the highest in the world and by 2025 it will be the only continent
where the youth population will expand. The projections also show that by 2035 Africa will have a
larger working population more than that of India and or China (Mo Ibrahim forum 2013). This
working population has the ability to transform the

Apec: It's Successes and Future Prospects
Shruti Jain APEC: It's Successes and Future Prospects Asia–Pacific Economic Cooperation,
commonly abbreviated for APEC has 21 Pacific members, including all the major economies of the
region and some of the most dynamic, fastest growing economies in the world. Statistically, APEC
members have a combined Gross Domestic Product of over $16 trillion and carry out 42% of world
trade. Over the past few years, APEC's role has grown in both depth and scope and now
encompasses trade liberalization, business facilitation, economic and technical cooperation. Despite
the differences in the levels of economy growth, there is a growing sense of common purpose and
cooperation aimed at sustained regional and world growth. Some objectives of APEC ... Show more
Moreover, APEC is a unique bridge between East Asia and the developing countries of Latin
America. APEC with created the channels that led to Latin America's FTA with China. APEC has
demonstrated the flexibility to adopt its agenda to changing global circumstances. Following the
9/11 attacks, APEC overcome earlier resistance and took up security matters appropriately linked to
trade. Port security, supply–chain security, food supply security are all now APEC themes. APEC
has also taken up the challenges of AIDS and the management of natural disasters. To sum up, the
APEC member economies have been the most active nations as far as economic dynamism is
concerned. Within few years of its inception, the different APEC economies together accounted for
70% of the growth in the economy world wide. APEC has managed to streamline economies of the
member nations. However, APEC faces several challenges as well. The most basic issue of APEC is
the structure, operation and funding of APEC itself. APEC has very few funds to support its
programmes or to undertake new initiatives. APEC's own attempts to speed up liberalization came to
an embarrassing end with the unresolved matters being referred to the WTO. Decision making is by
consensus, which has been defended by a number of members. There is a slow implementation of
Bogor Goals, which will make the development of broad East Asia agreement difficult. Worldwide
economic recession has dampened interest in free

Consumer Behavior Is Important For Business Firm Development
Consumer behaviour is always a crucial part for business firm development. International firms
invest myriad of money to understand their customers, in order to satisfy the need and wants of
customers. For example, IKEA, the world's leading home furnishing company, spent a total of £30
million in 2012. It aims to improve the shopping experience for customers, including the bedroom
showroom redesign. It is crystal clear that consumer behaviour plays a vital part in the success or
failure of a product. Meanwhile, consumer behaviour is a process which consumers go through
when they make purchases and it involves numerous factors that influence their decisions. As a
consumer, we make decisions every day. Some are far–reaching while others may be trivial and
inconsequential. However, we all know that human beings are irrational, our preferences often
deviate from rationality in the standard economics. We often make the wrong decision and it may
bring unfavourable consequences along with negative side effects. There are countless reasons for
making irrational decisions. One of the most astonishing arguments I recently discovered is that
people feel the pain of loss more acutely than they feel the pleasure of gain. Why this happened ?
For instance, when we buy a sofa from IKEA, they often provide a 30 days money–back guarantee.
However, even if we noticed that the sofa has imperfections, we seldom go back and return. Why ?
It is because we consider returning the sofa as a loss. A

The Contributions Of The Endowment Effect Essay
The endowment effect has been a heavily studied subject since the 1980's when it was first
described by Richard Thaler. This effect describes the phenomena where the buying and selling
prices of an object have major differences. The sellers tend to overvalue their object, requesting
higher prices than a buyer would be willing to pay. The buyers, on the other hand, demonstrate a
much lower maximum price. This discrepancy between buying and selling prices, dependent upon
the perspective of the person, is called the endowment effect. This effect has been connected to
many different cognitive mechanisms, but up until this point has not been studied from the
perspective of cognitive aging. The research in this paper will attempt to describe the endowment
effect, relevant research, potential cognitive mechanisms, and hypotheses relevant to age.
Theoretical Framework A major theory linked to the endowment effect is Tversky and Kahneman's
(1979) prospect theory. This theory provided new insight into the decision–making process, and
went further than previous theory, the utility theory, to explain how decisions are made. Tversky and
Kahneman describe prospect theory as a decision between gains and losses, or prospect and gambles
as it is referred to in their 1979 paper. With every choice we make there are probabilities of losing
and probabilities of gaining. In terms of gaining, prospect theory states that people are risk averse.
This means that when there are certain options of

Study Stock Market Trends : Ron Insana. Investments Don 't...
How to study Stock market trends – Ron Insana Investments don't always work as planned on Wall
Street. However, financial markets send signals regarding the future of the economy. Markets can
move in advance of information available to the general public. In a broad view, markets seemingly
anticipate political events. In other times, the markets will anticipate economic events long before
the investing public understands what's emerging in the general economy. The market is also
effective at discounting a transformational event. When the market excessively anticipates all future
revenues and all the future profits that would accrue to the phenomenon, a bubble or mania
develops. The repetitive nature of the phenomenon, or investment fad, ... Show more content on
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The stock and the fundamental reality of the company can become divorced. Eventually, the stock
price will reconnect with economic reality, given the way the markets have priced future profits.
People should pay attention to the indicators that suggest the bubble trend is maturing. For example,
when the Federal Reserve is raising interest rates, investors should not be in equities. Investors need
to recognize the historical significance of a shift in the fundamental economic environment, as
bubbles will continue to occur. The question is what will be the impact on the subsequent asset class
that experiences bubble mania.
Behavioral Finance and the psychology of investing – Greg La Blanc How can a bubble ever occur?
For markets to be efficient, the only element that has to be true is that prices consistently reflect the
information available at that time. However, bubbles are now developing in faster intervals and in
different sectors of the market. Experience flattens out the makings of a bubble and experience also
benefits investors by means of avoiding repeated errors in a particular investment.
Game theory applies to industrial organizations, labor markets and pricing. Game theory rarely
applies to finance. The Nash equilibrium is a term used in game theory to describe equilibrium
where each player 's strategy is optimal given the strategies of all other players. A Nash Equilibrium
exists when

Behavioral Finance By Daniel Kahneman And Amol Tversky
1.8. BEHAVIORAL FINANCE
The whole concept of Behavioural Finance was introduced by Daniel Kahneman and Amol Tversky
in late 1960s. They are called as the father of Behavioural Finance. Their observation began to kick
off a whole range of discoveries, with ramifications that investors cannot afford to ignore. Later,
Tversky and Kahneman began to uncover previously searched series of behavioural bias that causes
investors to act irrationally. In 2002, Daniel Kahneman received the Noble Memorial Prize for his
contribution to the study of rationality in economics. Understanding Behavioural Finance and how it
affects the markets is the key to a successful investment strategy.
Behavioral Finance is the new emerging science that explains the irrational behaviour of investors.
Behavioral Finance unwind the usual assumption of traditional finance by incorporating systematic,
observable and human departures from rationality into models of financial markets and behaviour. It
helps us to understand the actual the behaviour of investors versus theories of investors' behaviour.
... Show more content on Helpwriting.net ...
Behavioral Finance Micro (BFMI) – It deals with the behaviour or biases of individual investors. It
distinguishes them from rational investors envisaged in classical economic theory.
1.8.2. Behavioral Finance Macro (BFMA) – It detects and describes the deviation in efficient market
hypothesis that was explained by behavioral

Complications Of The Modigliani's Life-Cycle Theory
The General Theory was formally introduced in the 1936 by Keynes and This theory Introduce the
relationship between consumption and income, it was the first discussed about saving motives
(Fisher et al. 2010). The Modigliani's Life–Cycle Theory was formally introduced by Modigliani e
Brumberg (1954) (Browning & Lusardi, 1996). The life–cycle theory incorporate socioeconomic
variables an uncertain future and relationship between saving and the age–structure of the
population. According to this perspective a young individual has less wealthy and top wealthy is
reached just before individual retire. According to this perspective people are distributed by the
population pyramid, which over time the population growth and there are more number of ... Show
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(Browning & Lusardi, 1996). The relationship between saving and the age–structure of the
population is still currently considered as a good indicator for analyst behavior (Deaton, 2005). The
Permanent Income Hypothesis was formally introduced by Friedman (1957) and investigated high
income might save more and the individual consumer's at a level consistent with their estimated
long term average income (Shefrin & Thaler, 1988). This theory is similar to theory Life–Cycle.
(Browning & Lusardi, 1996). In the 1960s Theodore Schultz and Gary Becker emerged Human
Capital Theory (HCT) that defend investments in knowledge because the key to the economic
growth is where people interact with knowledge whatever increases the productivity and earnings.
First publication of the book Human Capital by Gary Becker in 1964 and has impact in economics,
education and sociology literature (Tan, 2014). Education is formalized at primary, secondary, and
higher levels by Cohn & Geske (1990), informal education at home and at work by Schultz (1981),
training and education by Mincer (1974) (Sweetland,

Indian Mutual Fund Industry: Challenges and Future Prospects
INDIAN MUTUAL FUND INDUSTRY: CHALLENGES AND FUTURE PROSPECTS Ms.Renu
Introduction India has been the fastest growing markets for mutual fund industry. With progressive
liberalization of economic policies, there has been rapid growth of capital market, money market
and financial services Industry including merchant banking, leasing and venture capital (Tripathy,
1996). The increasing globalization of financial groups, rapid spread of ... Show more content on
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21,805 crores.
Fourth Phase (Since February 2003): Following the repeal of UTI ACT 1963, it was bifurcated into
two separate entities in February 2003. One is the specified undertaking of UTI, functioning under
rules framed by government of India. Hence does not come under the purview of mutual fund
regulations. The second undertaking, UTI Mutual Fund Ltd, (registered with SEBI) ; was sponsored
by State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation. It
functions under the mutual fund regulations and at the end of January 2003 had assets under
management worth Rs. 29,835 crore.
Benefits of Mutual Fund Investment
Mutual fund investors enjoy the benefits of portfolio diversification, professional management at
low cost and greater transparency compared to other financial institutions, such as banks, thrifts,
insurance companies and pension funds.
Diversification: Investor can diversify his portfolio through mutual funds without requiring large
amount of funds as mutual funds invest in a number of companies across different sectors and
industries. It also helps him in spreading the risk over a range of securities. So the diversification
reduces the risk as all the stocks do not decline at the same time and in the same proportion.
Professional Management: Investment in mutual funds also enables the investors to reap the benefits
of professional management. Mutual fund team includes the

Maps Of Bounded Rationality : Psychology For Behavioural...
Maps of bounded rationality: Psychology for behavioural economics – Daniel Kahneman 2003
Introduction
Kahneman's article is an analysis of intuitive thinking and how it guides our decision–making.
Although primarily aimed at the field of psychology, it is an interdisciplinary article with
applications in economic theorising. Kahneman attempts to differentiate between two systems of
thought, one of intuition (system 1) and one of reasoning (system 2), and argues that many
judgements and choices are made intuitively, rather than with reason (a slower and more deliberate
process). Intuitive decision making, which encompasses heuristics, although generally more
efficient and rapid, makes the agent potentially subject to errors due to framing effects or violations
of dominance. The analysis of the studies and theoretical situations also provides criticism of the
commonly held model of the rational agent within economics. The article also further conceptualises
Kahneman's theory, the Prospect Theory (Kahneman & Tversky, 1979), which has descriptive
applications of people's choice in decision–making situations involving risk and known probability
of outcomes. These situations are typically unexplained by the more normative rational agent model.
Summary
Kahneman's systems of thought is largely built on the framework of Stanovich and West (2000; as
cited in Kahneman, 2003). It describes two types of thought processes: system 1 (perception and
intuition) and system 2 (reasoning).

Thinking Fast And Slow By Daniel Kahneman

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