You only live once: Our flawed understanding of risk helps drive financial market instability

Friday, December 17, 2010 - 17:30 in Psychology & Sociology

Our flawed understanding of how decisions in the present restrict our options in the future means that we may underestimate the risk associated with investment decisions, according to new research. The research suggests how policy makers might reshape financial risk controls to reduce market instability and the risk of market collapse.

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