Dr. Bryan Foltice Behavioral Finance Podcast

In this episode, we continue our discussion on the importance of retirement savings and why most individuals don't save enough. We talk about the mistakes people make with retirement, how to improve spending decisions, and finish with a discussion on why some people save too much.  00:00 Introduction and Short Life Update 03:45 Understanding Your Net Pay (and How much You Make per Hour) 06:40...

In this episode, we begin our discussion on the importance of retirement savings and why most individuals don't save enough. The biggest issue with this is that there are no do-overs for retirement savings, leaving most people ill-equipped for retirement.  👉 Subscribe to our channel to stay tuned: https://cutt.ly/rwfRZWED Defined Contribution (DC) Plan: Individual Accounts: In a DC plan, eac...

In this episode, we'll explore social norms, which are the unwritten rules and expectations that guide human behavior in a given society. They vary across cultures and can change over time. Here are some key points about social norms: Social norms defined: Social norms are shared expectations within a society about how individuals should behave in various situations. They help maintain order...

In this episode, we'll explore how the concepts of groupthink and conformity influence our decisions, shedding light on how these psychological tendencies influence our decisions, behavior, and society as a whole. Behavioral finance helps us understand how financial decisions around things like investments, payments, risk, and personal debt, are greatly influenced by human emotion, biases, an...

In today's episode, we delve into the intriguing interplay between selfishness and altruism in the realm of decision-making and its impact on financial choices. Behavioral finance helps us understand how financial decisions around things like investments, payments, risk, and personal debt, are greatly influenced by human emotion, biases, and cognitive limitations of the mind in processing and...

In today's episode, we'll dive into the fascinating topic of overconfidence and its implications in the world of finance and decision-making. Link to the 10 Question Overconfidence Survey (Links to an external site).: https://butler.qualtrics.com/jfe/form/SV_3CnkB2H2MN44dQF  Overconfidence is a cognitive bias that can lead individuals to overestimate their abilities, knowledge, and the a...

In this four and final podcast on heuristics and biases, we connect the previously learned biases and heuristics of the last three episodes to our financial decision making.  01:47 Heuristics Review   03:05 Diversification Heuristic (Naive Diversification) 11:16 Information Overload on Retirement Investment Decisions  13:52 Ambiguity in Investment Decisions (Under-diversification) 14:45 Home Bias...

In this third installment of heuristics and biases, we conclude this theme by discussing some vital biases - exponential growth, amortization, self-selection, and survivorship biases.  00:00 Introduction 02:25 Compound Interest - Exponential Growth Bias (EGB)   07:46 Exponential Growth Math FV=PV*(1+r)^t 09:35 Implications of Exponential Growth Bias 11:21 Learning Present Value - Who Wants to Be a...

In this episode, we continue our exploration into various heuristics and biases. We dive into various biases and heuristics.  00:00 Introduction  03:38 Status Quo Bias  07:58 Endowment Effect 12:50 Wine and Information Overload 19:03 "Representativeness" Defined 20:13 Conjunction Fallacy 25:15 Hot-Hand Effect 30:01 Gamblers Fallacy   32:35 Recency Bias  33:16 Salience    35:47 Availabili...

In this episode, we begin our exploration into various heuristics and biases. We dive into type 1 thinking and explore the pros and cons of our mental shortcuts.  00:00 Introduction  07:40 Background on Biases and Heuristics  08:30 Processing Constraints - Confirmation Bias and Cognitive Dissonance 16:49 3 Perception Issues: Halo Effect, Primacy Effect, Recency Effect 23:29 Heuristics Defined &quo...

In this episode, we explore various market observations that challenge semi-strong market efficiency. Here, we learn about six challenges of market efficiency and discuss the three issues to arbitrage exploitation.  00:00 Introduction  01:40 Exercise in Market Efficiency - Beauty Contest  09:48 Market Efficiency Forms (Strong, Semi-Strong, Weak) Review 12:33 Six Challenges to Market Efficiency (Se...

In this episode, we continue our deeper dive on Prospect Theory. Here, we learn about framing and mental accounting that comes with our decision-making, in life and finance.  00:00 Introduction  01:49 Introduction to Framing - Positive/Negative  07:16 Auditory Framing 08:28 Visual Framing 11:05 Value Framing 15:44 Mental Accounting - (Sub optimally) Categorizing money, spending or financial events...

In this episode, we continue our conversation on a previous podcast by doing a deeper dive on Prospect Theory. Here, we learn that prospect theory is four-fold and how to understand and use the prospect theory utility function.  00:00 Introduction  04:17 Decision #1 - Gain Domain - Risk Averse  07:06 Decision #2 - Loss Domain - Risk Seeking 10:00 Diminishing Value Sensitivity - Prospect Theory Uti...

In this episode, we continue our Introduction to Behavioral Finance by looking at the various forms of market efficiency as well as the challenges to these forms that Behavioral Finance brings.  00:00 Introduction  05:09 Capital Asset Pricing Model - Short Review  11:55 Challenging the Capital Asset Pricing Model (Value = Price Always/Generally) 14:55 Challenge #1 - Why do Some Investors/Trading S...

In this episode, we continue our Introduction to Behavioral Finance, continuing to look at how our decisions sometimes violate rational maximized "utility".  00:00 Introduction  03:07 You Are a Sum Total of All Decisions You've Made - Big and Small 09:25 Expected Value Review  11:22 Violation #2 of Expected Utility - Framing - Using the Allais Paradox 16:32 Violation #3 of Expected...

In this episode, we begin the Behavioral Finance course content with an introduction to Behavioral Finance, starting with a look at how we analyze our utility (read: happiness) and begin to discover how our real-life decisions often violate rational maximized "utility".  00:00 Introduction  04:37 Neoclassical Economics - 3 Assumptions of Fully Rational Participants 08:35 What is (Expecte...

Welcome to the Bryan Foltice Behavioral Finance Podcast! I hope you enjoy the content and learn all about the topic of Behavioral Finance. I've set up the first few podcasts as mini lectures of my Behavioral Finance course that I teach at Butler University each semester. The goal of this podcast is to provide a comprehensive look into the topic of Behavioral Finance - for free! In this first...