Harvard Business Review

JANUARY 7, 2011

The increasing rewards to work in finance were for a long time defended as evidence that the financial sector was creating more value than the rest of the economy. For a decade or two now, the financial sector has been doing something similar to the rest of the economy, especially but not exclusively, in the U.S. How artificially high?

Shaw 14

Shaw Decisionmaking Hedge Finance 14

Harvard Business Review

DECEMBER 9, 2010

Behavioral finance stayed on the margins. It doesn't offer much hope, though, for clear guidelines to macroeconomic decisionmaking. Also, by the way, the savings and loan mess was illustrating the problems with inadequate financial regulation. And nothing happened.

Decisionmaking 15

Decisionmaking Short-term Long-term Reference 15

Harvard Business Review

DECEMBER 2, 2010

You can find lots of scholars at top economics departments who study why bubbles and crashes happen, and how psychology and genetics shape individual decisionmaking. What you won't find is many who think the entire infrastructure of rationality-based economics needs to be tossed out. The other big idea in the 1988 article was chaos theory.

Decisionmaking 15

Decisionmaking Chaos Theory Hedge Marketing 15