Meir Statman : Next Gen Personal Finance Summit : NGPF
Meir Statman, Glenn Klimek Professor of Finance, was part of the Behavioral Finance panel at the Next Gen Personal Finance (NGPF) 2018 Summit in San Francisco. He shared his ideas on the benefits people consider when they make purchases, including utilitarian, expressive, and emotional benefits. He used lottery tickets as an example to suggest that “rational people” do not buy tickets but “normal people” do because of the planning that comes with what one would do with the win rather than focusing on how slim the chances of winning are. Furthermore, he suggests that as much as a person tries to beat the market the market will still beat one; therefore, through the various examples Statman gave, he showed how we do not make financial decisions solely on logic, but that it also includes our behavioral responses since the market, in the end, will still win.
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Learn more about Professor Meir Statman.