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Monday, October 10, 2011

Unrealistic Optimism

People tend to accept good news much more than bad according to this paper by Sharot, Korn and Dolan. I suppose these kinds of asymmetries stand at the heart of behavioural economics.

1 comment:

  1. I wonder is this finding linked to loss aversion?
    Ironic that this story was in the news on the day that Tom Sargent, a leading light in the Rational Expectations field, shared the Nobel Prize.

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