FHCE 3200 Lecture Notes - Lecture 1: Peanut Butter, Status Quo Bias, Neuroeconomics

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3200
• Professor: Goren

Document Summary

Financial capacity: cash in hand, assets. We are not bound by our default. How can we become more fo: practice self-regulation, set and prioritize goals, fo(cid:272)us o(cid:374) (cid:862)i(cid:374)(cid:448)esti(cid:374)g i(cid:374) (cid:455)ourself(cid:863, clearly articulate needs vs. wants. Slow (essentially) all thinking is on this continuum. Not clear which choices lead to the best outcomes. You must buy peanut butter for your house. You go to the store and head to the correct aisle. You (cid:373)ust sele(cid:272)t (cid:455)our first (cid:272)redit (cid:272)ard. People in general are fearful of loss. Investors with 20 year investment time horizon often tend to focus on short term losses instead of focusing on long term gains. Most people believe that they will never experience painful losses. Most people believe that they are a little better than average in their tasks. Seeking to confirm that their decision is correct. People often check reviews about a product after they have purchased it instead of checking reviews before the purchase.