![]() ![]() That’s why our System 1, which tries to work out an answer as quickly and seamlessly as possible, doesn’t get it right. If it takes 48 days for the patch to cover the entire lake, how long would it take the patch to cover half the lake? In a lake, there is a patch of lily pads.If it takes 5 machines 5 minutes to make 5 widgets, how long would it take 100 machines to make 100 widgets?.A bat and a ball together cost $110 in total.Don’t think about it too much, just go with your first response. ![]() Grab a pencil, read the question and write down the first answer that comes to mind. To begin, indulge me by doing this quick quiz. As we work through the series we’ll (hopefully) collectively become better at how we make our money decisions and how we interact with others in the same regard. This will then aid the understanding of how heuristics and biases in decision making impact our behaviour with money. This first instalment uses System 1 and System 2 thinking examples to help us be more conscious of the workings of our brain. Using market research and case studies in behavioural finance, relevant findings will be broken down into easy-to-understand examples. Specifically, the series will focus on the heuristics and biases that influence our relationship with money. ![]() ![]() This is the first post in a series where I’ll be sharing some behavioural economics research with you. ![]()
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