Behavioral finance on the King of Queens

An entire King of Queens episode devoted to behavioral finance and economics. Doug gets a Christmas bonus. He and Carrie decide not to spend their windfall (mental accounting). Doug wants to put it in the bank, while Carrie pushes for a high-flying internet stock (herd behavior). The stock goes up for one day, but quickly falls. They don’t sell because it’s too painful. They hold out, hoping the stock will recover (loss aversion). The stock continues to fall and they finally sell at the bottom. Then they notice news about government approval, the stock rallies, and they buy back in (availability bias). It’s all wrapped up in a syrupy sitcom message about the meaning of Christmas.

Hat tip: Rodrigo Sanchez.

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  • http://www.forecastfortomorrow.com Economic trend forecasters

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    Economic trend forecasters.

  • http://twitter.com/incblot Doctor Daniel Crosby

    Thought you might enjoy this TED video that explores some of the decision making biases common to investing and being in love. Keep producing great content on behavioral finance!

    http://www.youtube.com/watch?v=1kh9nqG8TyA&feature=youtu.be