Jodi Beggs: Economists Do It With Models

In a previous video, my class went over the empirical setup in one of the main papers about the disposition effect in stock-market behavior. Now they got to talk about the results of that analysis. If you need a refresher, you can see the whole behavioral economics playlist here.

This video describes the main results used to document the disposition effect in stock-market behavior, specifically relating to Terrance Odean's paper "Are Investors Reluctant to Realize Their Losses?" As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/ For t-shirts and other EDIWM items, see...

You know you’re an econ/math nerd if you read this and think “haha, it’s like the matching pennies game.” But hear me out…here’s the matching pennies game, and, like the joke, the crux of the game is that there is no Nash equilibrium without randomization. To further the analogy: The matching pennies game works as it does because player 1, let’s say, “gets off” when the pennies match whereas player 2 gets off when the pennies don’t match. (This wording hopefully shows the intuition of why...

In my class, I try to introduce a topic and then give my students a discussion question to work through so I can make sure that everyone is catching on. This discussion question relates back to the disposition effect, or the bias towards selling winning stocks and away from losing stocks. If you need a refresher, you can see the entire behavioral economics playlist here.

This video works through a practice question that asks students to calculate the statistics required to test for the disposition effect in a dataset of stock-market behavior. As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/ For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/ By Jodi...

This video works through a practice question that asks students to calculate the statistics required to test for the disposition effect in a dataset of stock-market behavior. As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/ For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/ By Jodi...

Steve Levitt, in addition to gaining fame (at least at an economist level, not a Justin Bieber level) for writing Freakonomics, has made a career teasing cause and effect out of (largely) observational data. (By “observational data,” I mean that he doesn’t explicitly run controlled experiments in a lot of cases and just looks at the world as it transpired naturally instead.) Observational data presents an interesting challenge because people usually make choices in life rather than being...

This video describes the empirical methodology used to document the disposition effect in stock-market behavior, specifically relating to Terrance Odean's paper "Are Investors Reluctant to Realize Their Losses?" As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/ For t-shirts and other EDIWM items, see...

This video introduces the concept of the disposition effect and discusses how it differs from related behavioral biases such as a false belief in mean reversion and the gambler's fallacy. As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/ For t-shirts and other EDIWM items, see...

It Cant get No Better by Jody Beggs & Randall Beggs