Thursday, March 01, 2007

Behavioral Finance

I've always found behavioral finance, especially the psychology of utility to be extremely interesting. In economics, utility is, "a measure of the relative happiness or satisfaction gained by consuming different bundles of goods and services".

What would you do if you were given $25,000 today? Would you spend it? If yes, how would you spend it? The answer reveals a lot about what you value in life and how you feel about money.

You can read more about behavioral finance here.

No comments: