The financial choices between behavioral finance, bias cognitive and behavioral heuristics, 2019
Abstract
The transformation process of economy into finance represents a level of development ... more Abstract
The transformation process of economy into finance represents a level of development of capitalism in western countries is relatively recent. Move capital, normally, from one side to the other side of the globe and they converge on a title rather than another is a question that requires just a few seconds. In contemporary society, the money obtained quickly and in a relatively extraordinary, evokes a fault which is much more difficult to control the greater is the desire to have more and more. The hypertrophy of the gains made through the transformation process of economy into finance losing sight of the real horizon of the economic system contributing in fact to create a structure that infragilisce more and more and that is every day to be more modest. The dominant ideology of the new way of understanding the economy, does not cease to show on the one hand as the world is dominated by the logic of unlimited wealth is only a viaticum of a future unsustainable, while on the other it has every choice objectively worse in the private and public sphere, as the only reasonably possible. The logical consequence is that of risk management. The risk is now a sociological question that touches in a manner more or less different, people, contexts, situations assuming every characteristics, which in recent years have been exacerbated by the terrorist phenomena are ever more widespread. Risk and uncertainty have a semantic field that overlaps, and are used as synonyms . The risk is a quantified uncertainty, it indicates a potential danger that may arise from an event or by a combination of circumstances, but it is no more than a possibility, it could not happen in a situation foreseen. While the uncertainty differs from this exception since accurately reflects a radical lack of knowledge. The capacity of resistance and tenacity in fighting the adversity respond to the precariousness of the human condition, always oscillating between strength and fragility. When we find ourselves in the situation of having to make a choice that is a financial choice or less, there are different factors, both psychologists and sociological so far as they are relevant to the knowledge of the subjects, which mutually integrated allow you to arrive at the final decision .The study of the choices in situations of uncertainty ranges and then by elements both mathematical and statistical and sociological and psychological, also considering economic aspects-politicians. This observation is also acceptable as regards the financial choices, which is the subject of the present study. This work aims to analyze the usefulness of financial education in the correction of the errors for behavior that influences the choices of individuals. Today is shared thought that investors in deciding on such assets to invest, do not behave in a way which is fully rational and not follow the axioms of the theory of the classical utility that provides the perfect rationality of the subjects and the perfect efficiency of the markets. Individuals would rather seem to be victims of errors the cognitive and emotional, bias and heuristics, that depart from the optimal choice. This optimal choice would be made byhomo economicus. This subject, framed within the theory of expected utility would be perfectly rational and capable, by definition, to use correctly all the information to him available to take decisions that maximize its objective function. Thanks to the creation of this figure economists have been able to formulate elegant theories about the financial choices under conditions of uncertainty, both elegant since, at the same time, scarcely adherent to the reality and just to be able to explain some empirical evidence. The traditional finance postulates that individuals faced with decisions, behave according to three types of rationality. The rationality of the perceptions, i.e. as if all information was captured and processed according to the theory of probability, the rationality of the preferences, i.e. as if the preferences were legacy, stable and coherent and rationality of the process that finally foresees that the subject should seek to maximize their preferences given the constraints of the market. This approach has been for a long time regarded as correct and dettante the useful rules to take the best financial decisions (regulatory approach). In many fields the elements psychological guide the financial choices and affect, even so important in the process of collection and processing of information.
The subject, for example, often take into consideration only the information that underline the goodness of their choice and forget those that are in conflict with the same. They are sometimes guided by what they think is true without giving importance to information of which are in possession, other times you believe knowledgeable and skilled operators of financial instruments being influenced by what was defined overconfidence. Individuals also possess portfolios not diversified enough or not optimal, are affected by what has been called home bias and seight performano because of excessive trading, in particular tend to sell too early titles to positive performance and maintain instead in the portfolio securities with negative performance (disposition effect). A fault that affects instead the market is the so-called equity premium puzzle, this phenomenon describes the fact that in the long term actions performano best of bonds at a rate which is not justified by the classical theory. All these bias, that affect the behavior of choice of individuals and which are not taken into account by the models formulated by the classical theory, are instead from the theories developed by behavioral finance.
organization models based on skills assessment-References to especially industrial complex: retic... more organization models based on skills assessment-References to especially industrial complex: reticular path of organizational processes and maximizing decision-making actions. 2005-2006 Professor of Business Management Master's Level-Tourism Marketing and improvement of tourist accommodation-Fondation Alario Parmenides-site of Ascea (SA). Subjects covered: Organizational Models and seminars based on behavioral patterns based on programming (NLP). Method has already been tried in various business sectors, whose primary focus is to help the individual to achieve a number of objectives including those of a greater control of their emotional state, greater control of stress, use of accurate and effective language (both within the family and in the business), higher self-esteem, safety, productivity, enthusiasm, and with a motivational growth. Stakeholders: Employers, Employees and mainly call-center operators, or those who have the first contact with the customer.
Numerous are the studies that prove the effectiveness of personal narratives on physical health a... more Numerous are the studies that prove the effectiveness of personal narratives on physical health and welfare staff. Write events connotations emotionally organize time that it has managed to structure and give meaning to his history, effects on an emotional level of experience narrated become more manageable the personal narratives, helping to obtain an optimum adjustment of the emotions through the reduction of excessive control and activation (arausal) seem to represent a possible methodology to act on the mechanisms psychologists (appraisal, coping and positive emotions) which contribute to the process of reintegration resilient. An economic agent, to deal effectively with a crisis, must mobilise and organize their own resources, contain stress and redefine a new functional structure and organizational structure which allows it to adapt to the new conditions. The fundamental processes that underlie a relational resilience are: flexibility, capacity to stay in relation, resources of a social and economic nature. For the scholar of behavioral economics is important to evaluate the quality of social relations and their numerosity and must also find the hidden resources and promote the creation of new connections both intra-system that extra-system. Must provide information about resources in the community and to facilitate access to them. In the behavioral study evaluation of the operation of the entire economic system and of the necessary interventions, should not be limited to the mode or internal problems to the system, but should also take into consideration the connections present or absent that bring into communication the entire economic organization with the other resources. You should explore the economic situation, the income and the conditions of work. The systemic crisis economic do not always reflect structural problems of businesses, often refer to problems of lack or incorrect social organization.
At the base of the economy as the other social sciences is always a theory of the actor. It ident... more At the base of the economy as the other social sciences is always a theory of the actor. It identifies the salient characteristics of the subjects who, through their actions, give origin to the collective phenomena social and economic in nature. Among these features the most relevant are those that explain the origin of the behavior of the actor: because he acts in a certain way; what are the effects of context on his choice; what are the principles that guide or characterize its decisions. Ultimately every action refers, explicitly or implicitly, to a theory of the mind. It represents, in a more or less detailed and direct causal variables responsible for generating the action. Generally in the economy the theory of the mind is not described explicitly and complete. It is in fact particularly psychological indications executions or implicit assumptions that are deducted from the principles of choice attributed to the plaintiff by the postulates of economic theory.
Objective: To assess the validity of a treatments-and tests-based Case-Finding Algorithm for iden... more Objective: To assess the validity of a treatments-and tests-based Case-Finding Algorithm for identifying patients with non-small cell lung cancer (NSCLC) from claims databases. Study design: A comparative statistical evaluation using receiver operating characteristic (ROC) curve analysis and other validity measures was used to validate the NSCLC Case-Finding Algorithm vs. a control algorithm. Data collection: Patients with lung cancer were identified based on diagnosis and pathology classifications as NSCLC or small-cell lung cancer. Records from identified patients were linked to claims data from Anthem health plans. Three-month pre-index and post-index data were included. Principal findings: The NSCLC Case-Finding Algorithm had an area under the curve (AUC) of 0.88 compared with 0.53 in the control (p < 0.0001). Promising diagnostic accuracy was observed for the NSCLC Case-Finding Algorithm based on sensitivity (94.8%), specificity (81.1%), positive predictive value (PPV) (95.3%), negative predictive value (NPV) (79.6%), accuracy (92.1%), and diagnostic odds ratio (DOR) (78.8). Conclusions: The NSCLC Case-Finding Algorithm demonstrated strong validity for distinguishing patients with NSCLC from those with SCLC in claims data records and can be used for research into NSCLC populations.
Complex systems are a research field extraordinarily charming: they are universally popular, not ... more Complex systems are a research field extraordinarily charming: they are universally popular, not only in physics and chemistry, but also in biology, in economics and social sciences. The science of complexity also deals with domains that have long frustrated attempts to quantitative description rigorous: for example in economy are undergoing a major developments related to the possibility of simulating the interaction between agents that are modeled in such a way as to renounce to the unrealistic assumption of the classical economy, as for example that of behavior perfectly rational. The main characteristics that were associated with the complexity relate to the presence of numerous elements interacting, the non-linearity of the interactions, the appearance in the overall level of emerging properties without a microscopic analogue, and last but not least the ability of self-organization. Each of these aspects deserves to be deepened, but it should be noted that a characteristic common to the systems that we consider complex is the ability to amplify a small local phenomenon bringing all the system in a state qualitatively new. Consider for example a phase transition as that from water to ice, which occurs (at temperatures below the freezing point) when local fluctuations give rise to a solid region large enough that the gain in free energy, associated with the formation of the solid phase, exceeds the energy cost relative to the formation of an interface between the two phases: this region is therefore stable and acts as a nucleus of condensation for further accretions, while a similar solid region, smaller size would be condemned to death
A famous experiment of the Fifties, conducted by L.Festinger, made the phenomenon of cognitive di... more A famous experiment of the Fifties, conducted by L.Festinger, made the phenomenon of cognitive dissonance evident. According to a certain behavioral theory, in an attempt to assimilate contradictory information, the human mind irrationally denies their disagreement, even at the expense of lying. In this sense, two concepts do not conflict or are verified: the purpose of this automation in reasoning is not to affirm the truth of one proposition with respect to the other but to attribute cognitive consistency to an idea that encompasses both of them A typical mental error that can influence decision-making is excessive concern for potential regret once a mediocre decision is made (or a "good" decision that turns out to be mediocre). This type of error is inherent in all individuals (some in excess) who do not want to admit to being wrong. We talk of "fear of regret" when the potential regret that comes from a mistake has an influence on our decision-making process that is totally disproportionate to the real damage we could face if the error really manifested itself. Some behavioral patterns are built on the idea that individuals make decisions to minimize the potential regret that might arise. The fear of regret influences behavior when individuals postpone their decisions. Some studies have shown that individuals make a decision, claiming they are expecting more detailed information, even when new information does not substantially change their decision (psychologists call it dislocation effect). The fear of regret can play a key role in our investment decision-making process even in other ways. When buying and selling shares, acting in such a way as to avoid the fear of regret can lead to holding too many losing stocks in the portfolio and selling too fast winning titles. When stocks lose value, investors seem to postpone the sale of those shares even if they may not match the expectations that they have come up with. Selling the title would mean giving body to the error and fear of regret is delayed by
The ability to influence and persuade others to get the things you want is one of the most import... more The ability to influence and persuade others to get the things you want is one of the most important skills to develop. You can buy so many things and ... people, but it is with the persuasion that you get more and especially in a more ethical way.
Within the study of thought and reasoning, numerous theories (Theory of the Duale Process) have developed which have proposed a distinction between two types of information analysis systems: • System 1: Fast, automatic and unconscious cognitive processes. • System 2: slow, deliberative and conscious cognitive processes. Despite the different Double Process theories differ from one another in their details, they all agree on the general characteristics of the two systems. The "system" label is used to describe a variety of processes that share their speed, controllability, and content on which they work. System 1 processes the information automatically, quickly, holistically, intuitively, does not require cognitive effort and is primarily unconscious. Instead, when we talk about System 2, we refer to explicit, controlled, slow processes with high cognitive, analytical and reflective effort. Distinction in the dual system does not imply that both systems are applied to any problem, or that each system has an exclusive domain of action.
We know man is a thought, a quantum event, a fluctuation of energy immersed in the great quantum ... more We know man is a thought, a quantum event, a fluctuation of energy immersed in the great quantum body of the universe. A thought is a quantum event of an energetic nature, and as such it does not differ from any other thought ... (do you know that the subatomic particles are all equal to each other?): From this it can be seen that there is no quantum difference between joy and Sadness, anger and happiness, between jealousy and trust, etc. The problem is born, as we shall soon see, when we give a label to these neutral energies, and we end up identifying ourselves with emotions, thus observing the surrounding reality with these new emotional spectacles. An emotion (beautiful or ugly being), a thought, is only a widespread, invisible energy wave that penetrates our consciousness and as such crosses our body, sometimes preferring a particular organ (heart, intestine, head, Stomach), and assuming a variable shape and size. If we observe the path of thought, we will see that after being raised to consciousness disappears: if we try to follow him, to see where he goes, we will come to an empty space; This space, where silence reigns, is the same as among the sounds, in the words, and is the gateway to the quantum and the spiritual world. When we are exercised to stay in this space (equal to what is between two breaths) there is a change in our physiology, similar to that produced by meditation, and by the repetition of a mantra: brain waves are transformed into Alpha waves, and nerve centers pass from normal functional chaos to coherence. The mind acquires a dignity different from what it identifies with thought: we understand that as an observer of our thoughts, we are more of its content, and we are beyond emotional engagement, which instead would lead us into prison Themselves woven with the threads of our ego (fear, approval, control over others, and objects, attachments, etc.). In addition, the mind, in this space, begins to manifest consciousness close to the discoveries of quantum physics: creation of reality, distance transmission; Non-location, synchronicity, etc. In emotional quantum, then, we transcend the causes and conditions that have caused our emotional reaction (fear, sadness, depression, anxiety ...), indeed these, if taken into account, give a completely wrong concept of the dynamic of the facts! Innovation is that, being energy-all, any emotion can be seen and lived as such: it demonstrates the exercises with which negative emotional charge fades instantly when, distracting attention from causes, we identify Only with energy for itself. From the point of view of quantum physics, the wave, of a neutral nature, is trapped by our will; This is followed by a naming of emotion, a label through which-if we identify with it-we cause a
Some of our daily decisions are dictated by virtually immaterial motives, such as avoiding losses... more Some of our daily decisions are dictated by virtually immaterial motives, such as avoiding losses or regrets. They involve fear, anger, frustration, envy, pride, honor, injustice, and never as of late, the lack of optimism and trust. One of the most obvious effects of the crisis we have experienced in recent years was to have violently shaken many of the theories on which a financial system is based.
Neuroeconomics is a highly interdisciplinary field of research Aimed at building a neurobiologica... more Neuroeconomics is a highly interdisciplinary field of research Aimed at building a neurobiological model of inferential and decision-making processes by integrating knowledge, methods and results from many areas of mind research, including psychology, neuroscience, economics and artificial intelligence. From the integration of these and many different souls, there is a broad articulation of the subjects of study that are relevant to neuroeconomics, and which include theoretical and basic aspects (How should we rationally take it, and how do we actually take decisions?), A survey on neural correlates that is the core nucleus of discipline (How Does Our Brain Participate in Decision Making ?. When we are faced with a difficulty-whether it's personal, relational or professional-the first thing we can do to solve it is to use a strategy that appears productive, perhaps because it has worked in the past for such a problem. If the chosen strategy works, the difficulty is resolved in a short time, but sometimes it happens that our strategy does not work as we would expect and that this will further intensify our efforts in that direction, since the solution we thought was Still the most logical, obvious, or the only possible. But the more we apply this strategy than the initial difficulty seems to not only not solve, but even complicate, turning into a real structured problem. In these cases, it is the efforts that the person makes in the direction of change to keep the situation unchanged, that is: the "tempted solutions" implemented by the subject and the people close to him to try to solve the problem end up feeding him and this determine its persistence. As we can see, being fully rational is quite tiring and costly for us limited human beings. It would therefore be necessary for each of us to become more aware of these automatic processes that intervene and mediate our decisions and actions, in order to do so we must "strive" and practice in practice. No improvement or knowledge comes if you are not ready to self-observe and question yourself. Rationality is a real "challenge" to which we have the responsibility to engage ourselves, as self-conscious self-thinking human beings.
It is to go out in publishing my work entitled Economics Cognitive Emotional. If anyone finds it ... more It is to go out in publishing my work entitled Economics Cognitive Emotional. If anyone finds it interesting topic we can establish collaborative synergies through seminars on the subject In this book we will examine the implications of neuroscience findings in detail with respect to four specific economic issues: intertemporal choice, decision making in situations of risk and uncertainty, game theory, and the emotional-cognitive behavioral discriminant analysis. Finally, although our focus will be on the application of neuroscience to the economy, nothing prevents that there are intellectual exchange also in the opposite direction. Even basic economic ideas could be very useful to nuroscienze, because the biggest difficulty is to find out how the variables and economic algorithms are represented in the different areas of the brain, and to succeed you must have neuroscientists and economists, on some level, to work together. In general, this issue pertains to the "decision theory" ("Decision Theory" in the diction predominant Anglo-Saxon), crossroads of a wide range of disciplines, from statistics to psychology, philosophy, cybernetics, until, in fact, the 'economy. It is a set of research, the focus on "conduct directed at a specific target in the presence of different options" is in turn dated somewhere in that yet wider field of behavioral studies, who settled in the early decades of the twentieth century with the 'attempt to encompass in a single view the whole of human conduct, and gradually evolved into complex cognitive science.
The emotions are the keystone of our interpretation of reality: they create plans of report (some... more The emotions are the keystone of our interpretation of reality: they create plans of report (some things feel "close" other "distant", and they appear in the distance which the puts the emotion) and hue (some things seem to us to be "lives" other "death"). The perception of reality is a mix of objective knowledge and subjective experiences. In sense neurobiological, in fact, the feeling of being in reality depends on neuronal circuits that connect the cerebral cortex (perception-cognition) to paleoencefalo, i.e., precisely, to the "center of emotions": this means that we have a sense of reality because we have emotions that classify and order our perceptions and knowledge in relation to a sort of affective hierarchy. The illusion of being bearers of a truth exclusivity is a symptom of a vision of reality much more distorted than you can imagine. The currents of thought more open and less aggiogato to cultural constraints classics, instead see in truth a subjective perception, and then strip.
The financial choices between behavioral finance, bias cognitive and behavioral heuristics, 2019
Abstract
The transformation process of economy into finance represents a level of development ... more Abstract
The transformation process of economy into finance represents a level of development of capitalism in western countries is relatively recent. Move capital, normally, from one side to the other side of the globe and they converge on a title rather than another is a question that requires just a few seconds. In contemporary society, the money obtained quickly and in a relatively extraordinary, evokes a fault which is much more difficult to control the greater is the desire to have more and more. The hypertrophy of the gains made through the transformation process of economy into finance losing sight of the real horizon of the economic system contributing in fact to create a structure that infragilisce more and more and that is every day to be more modest. The dominant ideology of the new way of understanding the economy, does not cease to show on the one hand as the world is dominated by the logic of unlimited wealth is only a viaticum of a future unsustainable, while on the other it has every choice objectively worse in the private and public sphere, as the only reasonably possible. The logical consequence is that of risk management. The risk is now a sociological question that touches in a manner more or less different, people, contexts, situations assuming every characteristics, which in recent years have been exacerbated by the terrorist phenomena are ever more widespread. Risk and uncertainty have a semantic field that overlaps, and are used as synonyms . The risk is a quantified uncertainty, it indicates a potential danger that may arise from an event or by a combination of circumstances, but it is no more than a possibility, it could not happen in a situation foreseen. While the uncertainty differs from this exception since accurately reflects a radical lack of knowledge. The capacity of resistance and tenacity in fighting the adversity respond to the precariousness of the human condition, always oscillating between strength and fragility. When we find ourselves in the situation of having to make a choice that is a financial choice or less, there are different factors, both psychologists and sociological so far as they are relevant to the knowledge of the subjects, which mutually integrated allow you to arrive at the final decision .The study of the choices in situations of uncertainty ranges and then by elements both mathematical and statistical and sociological and psychological, also considering economic aspects-politicians. This observation is also acceptable as regards the financial choices, which is the subject of the present study. This work aims to analyze the usefulness of financial education in the correction of the errors for behavior that influences the choices of individuals. Today is shared thought that investors in deciding on such assets to invest, do not behave in a way which is fully rational and not follow the axioms of the theory of the classical utility that provides the perfect rationality of the subjects and the perfect efficiency of the markets. Individuals would rather seem to be victims of errors the cognitive and emotional, bias and heuristics, that depart from the optimal choice. This optimal choice would be made byhomo economicus. This subject, framed within the theory of expected utility would be perfectly rational and capable, by definition, to use correctly all the information to him available to take decisions that maximize its objective function. Thanks to the creation of this figure economists have been able to formulate elegant theories about the financial choices under conditions of uncertainty, both elegant since, at the same time, scarcely adherent to the reality and just to be able to explain some empirical evidence. The traditional finance postulates that individuals faced with decisions, behave according to three types of rationality. The rationality of the perceptions, i.e. as if all information was captured and processed according to the theory of probability, the rationality of the preferences, i.e. as if the preferences were legacy, stable and coherent and rationality of the process that finally foresees that the subject should seek to maximize their preferences given the constraints of the market. This approach has been for a long time regarded as correct and dettante the useful rules to take the best financial decisions (regulatory approach). In many fields the elements psychological guide the financial choices and affect, even so important in the process of collection and processing of information.
The subject, for example, often take into consideration only the information that underline the goodness of their choice and forget those that are in conflict with the same. They are sometimes guided by what they think is true without giving importance to information of which are in possession, other times you believe knowledgeable and skilled operators of financial instruments being influenced by what was defined overconfidence. Individuals also possess portfolios not diversified enough or not optimal, are affected by what has been called home bias and seight performano because of excessive trading, in particular tend to sell too early titles to positive performance and maintain instead in the portfolio securities with negative performance (disposition effect). A fault that affects instead the market is the so-called equity premium puzzle, this phenomenon describes the fact that in the long term actions performano best of bonds at a rate which is not justified by the classical theory. All these bias, that affect the behavior of choice of individuals and which are not taken into account by the models formulated by the classical theory, are instead from the theories developed by behavioral finance.
organization models based on skills assessment-References to especially industrial complex: retic... more organization models based on skills assessment-References to especially industrial complex: reticular path of organizational processes and maximizing decision-making actions. 2005-2006 Professor of Business Management Master's Level-Tourism Marketing and improvement of tourist accommodation-Fondation Alario Parmenides-site of Ascea (SA). Subjects covered: Organizational Models and seminars based on behavioral patterns based on programming (NLP). Method has already been tried in various business sectors, whose primary focus is to help the individual to achieve a number of objectives including those of a greater control of their emotional state, greater control of stress, use of accurate and effective language (both within the family and in the business), higher self-esteem, safety, productivity, enthusiasm, and with a motivational growth. Stakeholders: Employers, Employees and mainly call-center operators, or those who have the first contact with the customer.
Numerous are the studies that prove the effectiveness of personal narratives on physical health a... more Numerous are the studies that prove the effectiveness of personal narratives on physical health and welfare staff. Write events connotations emotionally organize time that it has managed to structure and give meaning to his history, effects on an emotional level of experience narrated become more manageable the personal narratives, helping to obtain an optimum adjustment of the emotions through the reduction of excessive control and activation (arausal) seem to represent a possible methodology to act on the mechanisms psychologists (appraisal, coping and positive emotions) which contribute to the process of reintegration resilient. An economic agent, to deal effectively with a crisis, must mobilise and organize their own resources, contain stress and redefine a new functional structure and organizational structure which allows it to adapt to the new conditions. The fundamental processes that underlie a relational resilience are: flexibility, capacity to stay in relation, resources of a social and economic nature. For the scholar of behavioral economics is important to evaluate the quality of social relations and their numerosity and must also find the hidden resources and promote the creation of new connections both intra-system that extra-system. Must provide information about resources in the community and to facilitate access to them. In the behavioral study evaluation of the operation of the entire economic system and of the necessary interventions, should not be limited to the mode or internal problems to the system, but should also take into consideration the connections present or absent that bring into communication the entire economic organization with the other resources. You should explore the economic situation, the income and the conditions of work. The systemic crisis economic do not always reflect structural problems of businesses, often refer to problems of lack or incorrect social organization.
At the base of the economy as the other social sciences is always a theory of the actor. It ident... more At the base of the economy as the other social sciences is always a theory of the actor. It identifies the salient characteristics of the subjects who, through their actions, give origin to the collective phenomena social and economic in nature. Among these features the most relevant are those that explain the origin of the behavior of the actor: because he acts in a certain way; what are the effects of context on his choice; what are the principles that guide or characterize its decisions. Ultimately every action refers, explicitly or implicitly, to a theory of the mind. It represents, in a more or less detailed and direct causal variables responsible for generating the action. Generally in the economy the theory of the mind is not described explicitly and complete. It is in fact particularly psychological indications executions or implicit assumptions that are deducted from the principles of choice attributed to the plaintiff by the postulates of economic theory.
Objective: To assess the validity of a treatments-and tests-based Case-Finding Algorithm for iden... more Objective: To assess the validity of a treatments-and tests-based Case-Finding Algorithm for identifying patients with non-small cell lung cancer (NSCLC) from claims databases. Study design: A comparative statistical evaluation using receiver operating characteristic (ROC) curve analysis and other validity measures was used to validate the NSCLC Case-Finding Algorithm vs. a control algorithm. Data collection: Patients with lung cancer were identified based on diagnosis and pathology classifications as NSCLC or small-cell lung cancer. Records from identified patients were linked to claims data from Anthem health plans. Three-month pre-index and post-index data were included. Principal findings: The NSCLC Case-Finding Algorithm had an area under the curve (AUC) of 0.88 compared with 0.53 in the control (p < 0.0001). Promising diagnostic accuracy was observed for the NSCLC Case-Finding Algorithm based on sensitivity (94.8%), specificity (81.1%), positive predictive value (PPV) (95.3%), negative predictive value (NPV) (79.6%), accuracy (92.1%), and diagnostic odds ratio (DOR) (78.8). Conclusions: The NSCLC Case-Finding Algorithm demonstrated strong validity for distinguishing patients with NSCLC from those with SCLC in claims data records and can be used for research into NSCLC populations.
Complex systems are a research field extraordinarily charming: they are universally popular, not ... more Complex systems are a research field extraordinarily charming: they are universally popular, not only in physics and chemistry, but also in biology, in economics and social sciences. The science of complexity also deals with domains that have long frustrated attempts to quantitative description rigorous: for example in economy are undergoing a major developments related to the possibility of simulating the interaction between agents that are modeled in such a way as to renounce to the unrealistic assumption of the classical economy, as for example that of behavior perfectly rational. The main characteristics that were associated with the complexity relate to the presence of numerous elements interacting, the non-linearity of the interactions, the appearance in the overall level of emerging properties without a microscopic analogue, and last but not least the ability of self-organization. Each of these aspects deserves to be deepened, but it should be noted that a characteristic common to the systems that we consider complex is the ability to amplify a small local phenomenon bringing all the system in a state qualitatively new. Consider for example a phase transition as that from water to ice, which occurs (at temperatures below the freezing point) when local fluctuations give rise to a solid region large enough that the gain in free energy, associated with the formation of the solid phase, exceeds the energy cost relative to the formation of an interface between the two phases: this region is therefore stable and acts as a nucleus of condensation for further accretions, while a similar solid region, smaller size would be condemned to death
A famous experiment of the Fifties, conducted by L.Festinger, made the phenomenon of cognitive di... more A famous experiment of the Fifties, conducted by L.Festinger, made the phenomenon of cognitive dissonance evident. According to a certain behavioral theory, in an attempt to assimilate contradictory information, the human mind irrationally denies their disagreement, even at the expense of lying. In this sense, two concepts do not conflict or are verified: the purpose of this automation in reasoning is not to affirm the truth of one proposition with respect to the other but to attribute cognitive consistency to an idea that encompasses both of them A typical mental error that can influence decision-making is excessive concern for potential regret once a mediocre decision is made (or a "good" decision that turns out to be mediocre). This type of error is inherent in all individuals (some in excess) who do not want to admit to being wrong. We talk of "fear of regret" when the potential regret that comes from a mistake has an influence on our decision-making process that is totally disproportionate to the real damage we could face if the error really manifested itself. Some behavioral patterns are built on the idea that individuals make decisions to minimize the potential regret that might arise. The fear of regret influences behavior when individuals postpone their decisions. Some studies have shown that individuals make a decision, claiming they are expecting more detailed information, even when new information does not substantially change their decision (psychologists call it dislocation effect). The fear of regret can play a key role in our investment decision-making process even in other ways. When buying and selling shares, acting in such a way as to avoid the fear of regret can lead to holding too many losing stocks in the portfolio and selling too fast winning titles. When stocks lose value, investors seem to postpone the sale of those shares even if they may not match the expectations that they have come up with. Selling the title would mean giving body to the error and fear of regret is delayed by
The ability to influence and persuade others to get the things you want is one of the most import... more The ability to influence and persuade others to get the things you want is one of the most important skills to develop. You can buy so many things and ... people, but it is with the persuasion that you get more and especially in a more ethical way.
Within the study of thought and reasoning, numerous theories (Theory of the Duale Process) have developed which have proposed a distinction between two types of information analysis systems: • System 1: Fast, automatic and unconscious cognitive processes. • System 2: slow, deliberative and conscious cognitive processes. Despite the different Double Process theories differ from one another in their details, they all agree on the general characteristics of the two systems. The "system" label is used to describe a variety of processes that share their speed, controllability, and content on which they work. System 1 processes the information automatically, quickly, holistically, intuitively, does not require cognitive effort and is primarily unconscious. Instead, when we talk about System 2, we refer to explicit, controlled, slow processes with high cognitive, analytical and reflective effort. Distinction in the dual system does not imply that both systems are applied to any problem, or that each system has an exclusive domain of action.
We know man is a thought, a quantum event, a fluctuation of energy immersed in the great quantum ... more We know man is a thought, a quantum event, a fluctuation of energy immersed in the great quantum body of the universe. A thought is a quantum event of an energetic nature, and as such it does not differ from any other thought ... (do you know that the subatomic particles are all equal to each other?): From this it can be seen that there is no quantum difference between joy and Sadness, anger and happiness, between jealousy and trust, etc. The problem is born, as we shall soon see, when we give a label to these neutral energies, and we end up identifying ourselves with emotions, thus observing the surrounding reality with these new emotional spectacles. An emotion (beautiful or ugly being), a thought, is only a widespread, invisible energy wave that penetrates our consciousness and as such crosses our body, sometimes preferring a particular organ (heart, intestine, head, Stomach), and assuming a variable shape and size. If we observe the path of thought, we will see that after being raised to consciousness disappears: if we try to follow him, to see where he goes, we will come to an empty space; This space, where silence reigns, is the same as among the sounds, in the words, and is the gateway to the quantum and the spiritual world. When we are exercised to stay in this space (equal to what is between two breaths) there is a change in our physiology, similar to that produced by meditation, and by the repetition of a mantra: brain waves are transformed into Alpha waves, and nerve centers pass from normal functional chaos to coherence. The mind acquires a dignity different from what it identifies with thought: we understand that as an observer of our thoughts, we are more of its content, and we are beyond emotional engagement, which instead would lead us into prison Themselves woven with the threads of our ego (fear, approval, control over others, and objects, attachments, etc.). In addition, the mind, in this space, begins to manifest consciousness close to the discoveries of quantum physics: creation of reality, distance transmission; Non-location, synchronicity, etc. In emotional quantum, then, we transcend the causes and conditions that have caused our emotional reaction (fear, sadness, depression, anxiety ...), indeed these, if taken into account, give a completely wrong concept of the dynamic of the facts! Innovation is that, being energy-all, any emotion can be seen and lived as such: it demonstrates the exercises with which negative emotional charge fades instantly when, distracting attention from causes, we identify Only with energy for itself. From the point of view of quantum physics, the wave, of a neutral nature, is trapped by our will; This is followed by a naming of emotion, a label through which-if we identify with it-we cause a
Some of our daily decisions are dictated by virtually immaterial motives, such as avoiding losses... more Some of our daily decisions are dictated by virtually immaterial motives, such as avoiding losses or regrets. They involve fear, anger, frustration, envy, pride, honor, injustice, and never as of late, the lack of optimism and trust. One of the most obvious effects of the crisis we have experienced in recent years was to have violently shaken many of the theories on which a financial system is based.
Neuroeconomics is a highly interdisciplinary field of research Aimed at building a neurobiologica... more Neuroeconomics is a highly interdisciplinary field of research Aimed at building a neurobiological model of inferential and decision-making processes by integrating knowledge, methods and results from many areas of mind research, including psychology, neuroscience, economics and artificial intelligence. From the integration of these and many different souls, there is a broad articulation of the subjects of study that are relevant to neuroeconomics, and which include theoretical and basic aspects (How should we rationally take it, and how do we actually take decisions?), A survey on neural correlates that is the core nucleus of discipline (How Does Our Brain Participate in Decision Making ?. When we are faced with a difficulty-whether it's personal, relational or professional-the first thing we can do to solve it is to use a strategy that appears productive, perhaps because it has worked in the past for such a problem. If the chosen strategy works, the difficulty is resolved in a short time, but sometimes it happens that our strategy does not work as we would expect and that this will further intensify our efforts in that direction, since the solution we thought was Still the most logical, obvious, or the only possible. But the more we apply this strategy than the initial difficulty seems to not only not solve, but even complicate, turning into a real structured problem. In these cases, it is the efforts that the person makes in the direction of change to keep the situation unchanged, that is: the "tempted solutions" implemented by the subject and the people close to him to try to solve the problem end up feeding him and this determine its persistence. As we can see, being fully rational is quite tiring and costly for us limited human beings. It would therefore be necessary for each of us to become more aware of these automatic processes that intervene and mediate our decisions and actions, in order to do so we must "strive" and practice in practice. No improvement or knowledge comes if you are not ready to self-observe and question yourself. Rationality is a real "challenge" to which we have the responsibility to engage ourselves, as self-conscious self-thinking human beings.
It is to go out in publishing my work entitled Economics Cognitive Emotional. If anyone finds it ... more It is to go out in publishing my work entitled Economics Cognitive Emotional. If anyone finds it interesting topic we can establish collaborative synergies through seminars on the subject In this book we will examine the implications of neuroscience findings in detail with respect to four specific economic issues: intertemporal choice, decision making in situations of risk and uncertainty, game theory, and the emotional-cognitive behavioral discriminant analysis. Finally, although our focus will be on the application of neuroscience to the economy, nothing prevents that there are intellectual exchange also in the opposite direction. Even basic economic ideas could be very useful to nuroscienze, because the biggest difficulty is to find out how the variables and economic algorithms are represented in the different areas of the brain, and to succeed you must have neuroscientists and economists, on some level, to work together. In general, this issue pertains to the "decision theory" ("Decision Theory" in the diction predominant Anglo-Saxon), crossroads of a wide range of disciplines, from statistics to psychology, philosophy, cybernetics, until, in fact, the 'economy. It is a set of research, the focus on "conduct directed at a specific target in the presence of different options" is in turn dated somewhere in that yet wider field of behavioral studies, who settled in the early decades of the twentieth century with the 'attempt to encompass in a single view the whole of human conduct, and gradually evolved into complex cognitive science.
The emotions are the keystone of our interpretation of reality: they create plans of report (some... more The emotions are the keystone of our interpretation of reality: they create plans of report (some things feel "close" other "distant", and they appear in the distance which the puts the emotion) and hue (some things seem to us to be "lives" other "death"). The perception of reality is a mix of objective knowledge and subjective experiences. In sense neurobiological, in fact, the feeling of being in reality depends on neuronal circuits that connect the cerebral cortex (perception-cognition) to paleoencefalo, i.e., precisely, to the "center of emotions": this means that we have a sense of reality because we have emotions that classify and order our perceptions and knowledge in relation to a sort of affective hierarchy. The illusion of being bearers of a truth exclusivity is a symptom of a vision of reality much more distorted than you can imagine. The currents of thought more open and less aggiogato to cultural constraints classics, instead see in truth a subjective perception, and then strip.
One of the key concepts of science of complexity, self-organization, was formulated for the first... more One of the key concepts of science of complexity, self-organization, was formulated for the first time in economics by Adam Smith, with the metaphor of the "invisible hand". Arthur and Herbert Simon and are bound by a double red thread: on the one hand, they are a challenge to the orthodoxy of classical and neoclassical economic science and, on the other hand, they are the result of a personal approach to the search for a highly multidisciplinary matrix. Friedrich August von Hayek is one of the last representatives of the Viennese school of economics, whose focus can be found in the individual decision-making contextualized in the institutional historical framework of a complex society. What qualifies Hayekian analysis is the study of the spontaneity of the results that emerge from relationships between individuals. Price system, cultural heritage, language, morality, currency: all these phenomena are not the result of a deliberate action of some central authority, but the product of the interaction of many uncoordinated individual actions Which, however, give rise to spontaneous phenomena of organized complexity, or rather self-organizing systems.Understanding how spontaneous self-organizing phenomena work, Hayek points out, it is then important to influence their dynamics through interventions on social institutions, in turn the fruits of the historical process of individual interaction. In the 1980s, some economists developed a vision of the economic system based on increasing returns, ie on positive feedback mechanisms for increasing profits, unevenly declining unit costs and technological lock-in, all phenomena characterizing in particular the knowledge-based sectors. According to this theory, economic systems are dissipative structures and, as such, characterized by instability, irreversibility, discontinuities, sudden qualitative changes, such as speculative ups and downs, monopolies, which the conventional economy based on declining yields is not Able to explain. For example, in the face of rising returns, technology always monopolizes the market at the expense of others, giving rise to c.d. lock-in. The dominant version will be the one that at the initial stages of the competition has been able to attract the most volume of demand and it is no surprise that it is the best: in other words, events with little probability can confine the economic system to one of the many distant points From balance and this point may not be the best. The technology dominates until it is spotted by a new one and the process reboots. Growing yield theory is not intended to replace traditional economic theory but to complete it. It is particularly useful for economic and industrial policy decisions as it definitely proves the existence of sectors with different economic behaviors: those which are driven by declining yields (eg agricultural and commodity) and those dominated by rising returns (Typically knowledge-intensive ones).
The role of emotions in decision-making processes, finds confirmation in the analysis of brain ac... more The role of emotions in decision-making processes, finds confirmation in the analysis of brain activity: the emotional systems, as well as automatic ones in fact represent a fundamental contribution in the formation of the decisions on the part of the consumer. In addition to some experiments show that a malfunction of the emotional systems does not allow the decision-making system to work autonomously.
Interesting aspect, especially in the context of the traditional methods of marketing (focus group and interviews) is the function performed by the deliberative system. This system is in fact responsible for the rational justification of the behavior and by neuroscientifici studies showed that it is not able to exert its influence on the decision-making systems that take place below the level of awareness, but on the contrary, in justifying the behaviors performed by the subject, amplifies the importance of the processes that is able to manage, thus providing a justification not objective of what is happening in the brain.
Characteristics of the emotional mind. The emotional mind is much more rapid than rational, becau... more Characteristics of the emotional mind. The emotional mind is much more rapid than rational, because it passes to the action without even stop a moment to reflect on what to do. Its fast preclude reflection deliberate analytical and that characterizes the thinking mind. In the evolutionary process this rapidity is connected, very likely, the decision most essential, i.e. what should be careful and once vigilant (for example in front of another animal) to take in a fraction of a second decisions of the type: between the two of us who is the prey, i or him? The bodies that were to dwell too long to reflect on the answers to such questions were less likely to generate a numerous offspring to which transmit the genes that accounted for their slowness in the act. The actions arising from the mind emotional are accompanied by a feeling of safety particularly strong, deriving from a way of seeing things simplified and immediate, that can appear absolutely shocking to the rational mind. To things done or even in the midst of the action we are surprise to think: "Because I did this?", a sign that the rational mind is waking up, but without the readiness of the emotional. The great advantage is that the emotional mind can read an emotional reality in an instant, producing that judgment immediate intuitive that tells us who we should be wary of those who we can trust and those who find themselves in a difficult situation. The emotional mind is our radar to discover the danger; if we expected the intervention of the rational mind to formulate some of these reviews, we could not only go wrong, but even die. The disadvantage is that these impressions and these reviews are intuitive, occurring in a fraction of a second, may be erroneous or malaccorti. Since the rational mind needs more time with respect to the emotional mind to record the impressions and to react, the "first pulse" in an emotional situation is dictated from the heart and not from the brain. There is also a second type of emotional reaction, slower response of the fastener, which hatching and ferments in our thoughts before bringing to a sentiment. This second track is more deliberate and generally we are aware of the thoughts that guide us toward it. In this
New challenges in corporate governance: Theory and Practice, 2019
The globalization of markets and the development of increasingly complex business networks emphas... more The globalization of markets and the development of increasingly complex business networks emphasize the criticality of information flows and communication channels aimed at relations between the corporate executive body, management, shareholders and other stakeholders. In a complex framework of relationships, communication and information of corporate governance are of major importance for the tools of consensus management of complex organizations, characterized by multiple structures of interest and oriented Market-Driven Management. Regardless of the governance model chosen, companies must put the goal of building a consistent system of relationships, with different target audiences, thus establishing consistent communication of corporate governance policies.
Professor of Master in Behavioral Marketing and Industrial Processes-Niccolò Cusano University-Ro... more Professor of Master in Behavioral Marketing and Industrial Processes-Niccolò Cusano University-Rome. Five-year experience in anti-money laundering, transparency, anti-corruption, patrimonial offenses regarding the fight against the mafia. Accounting Expert on International Accounting Standards for Public Bodies. Teacher Traineron issues relating to Transparency, Anti-corruption and Mapping ofprocesses in the area of management control, evaluation of projects,Finance Modeling and Corporate Wellbeing. Assignments on behalf of the companies EULAB SRL-Eurosviluppo Srl of the Solco Srl Group. Teacher Trainer Pay and Contribution Forms-Fund Formatemp Cosenza-Assignment on behalf ofRS Training Company. Teacher Traineron issues relating to Transparency, Anti-Corruption and Anti-Money Laundering, reserved to the Management of the Municipality of Livorno-Appointment on behalf of the company Eulab Srl Lecturer on the New Regulations relating to the Procurement Code, Governance and Extraordinary Budget Operations of public subsidiaries-Appointment on behalf of Salerno Sistemi Spa. Teacher Trainerof international taxation, anti-corruption and fraudulent behavior. Advanced training courseAdvanced Guardia di Finanza-Economic and Financial Police Department-Abruzzo Region. Topics covered:Transfer Pricing, International Taxation, Tax Treatment of Instrumentsderivatives in the financial statements, cryptocurrencies and anti-money laundering and corporate income and international accounting standards IAS-IFRS-OIC basic and advanced level. Assignment on behalf of the company Eurosviluppo SRL.
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The transformation process of economy into finance represents a level of development of capitalism in western countries is relatively recent. Move capital, normally, from one side to the other side of the globe and they converge on a title rather than another is a question that requires just a few seconds. In contemporary society, the money obtained quickly and in a relatively extraordinary, evokes a fault which is much more difficult to control the greater is the desire to have more and more. The hypertrophy of the gains made through the transformation process of economy into finance losing sight of the real horizon of the economic system contributing in fact to create a structure that infragilisce more and more and that is every day to be more modest. The dominant ideology of the new way of understanding the economy, does not cease to show on the one hand as the world is dominated by the logic of unlimited wealth is only a viaticum of a future unsustainable, while on the other it has every choice objectively worse in the private and public sphere, as the only reasonably possible. The logical consequence is that of risk management. The risk is now a sociological question that touches in a manner more or less different, people, contexts, situations assuming every characteristics, which in recent years have been exacerbated by the terrorist phenomena are ever more widespread. Risk and uncertainty have a semantic field that overlaps, and are used as synonyms . The risk is a quantified uncertainty, it indicates a potential danger that may arise from an event or by a combination of circumstances, but it is no more than a possibility, it could not happen in a situation foreseen. While the uncertainty differs from this exception since accurately reflects a radical lack of knowledge. The capacity of resistance and tenacity in fighting the adversity respond to the precariousness of the human condition, always oscillating between strength and fragility. When we find ourselves in the situation of having to make a choice that is a financial choice or less, there are different factors, both psychologists and sociological so far as they are relevant to the knowledge of the subjects, which mutually integrated allow you to arrive at the final decision .The study of the choices in situations of uncertainty ranges and then by elements both mathematical and statistical and sociological and psychological, also considering economic aspects-politicians. This observation is also acceptable as regards the financial choices, which is the subject of the present study. This work aims to analyze the usefulness of financial education in the correction of the errors for behavior that influences the choices of individuals. Today is shared thought that investors in deciding on such assets to invest, do not behave in a way which is fully rational and not follow the axioms of the theory of the classical utility that provides the perfect rationality of the subjects and the perfect efficiency of the markets. Individuals would rather seem to be victims of errors the cognitive and emotional, bias and heuristics, that depart from the optimal choice. This optimal choice would be made byhomo economicus. This subject, framed within the theory of expected utility would be perfectly rational and capable, by definition, to use correctly all the information to him available to take decisions that maximize its objective function. Thanks to the creation of this figure economists have been able to formulate elegant theories about the financial choices under conditions of uncertainty, both elegant since, at the same time, scarcely adherent to the reality and just to be able to explain some empirical evidence. The traditional finance postulates that individuals faced with decisions, behave according to three types of rationality. The rationality of the perceptions, i.e. as if all information was captured and processed according to the theory of probability, the rationality of the preferences, i.e. as if the preferences were legacy, stable and coherent and rationality of the process that finally foresees that the subject should seek to maximize their preferences given the constraints of the market. This approach has been for a long time regarded as correct and dettante the useful rules to take the best financial decisions (regulatory approach). In many fields the elements psychological guide the financial choices and affect, even so important in the process of collection and processing of information.
The subject, for example, often take into consideration only the information that underline the goodness of their choice and forget those that are in conflict with the same. They are sometimes guided by what they think is true without giving importance to information of which are in possession, other times you believe knowledgeable and skilled operators of financial instruments being influenced by what was defined overconfidence. Individuals also possess portfolios not diversified enough or not optimal, are affected by what has been called home bias and seight performano because of excessive trading, in particular tend to sell too early titles to positive performance and maintain instead in the portfolio securities with negative performance (disposition effect). A fault that affects instead the market is the so-called equity premium puzzle, this phenomenon describes the fact that in the long term actions performano best of bonds at a rate which is not justified by the classical theory. All these bias, that affect the behavior of choice of individuals and which are not taken into account by the models formulated by the classical theory, are instead from the theories developed by behavioral finance.
Within the study of thought and reasoning, numerous theories (Theory of the Duale Process) have developed which have proposed a distinction between two types of information analysis systems:
• System 1: Fast, automatic and unconscious cognitive processes.
• System 2: slow, deliberative and conscious cognitive processes.
Despite the different Double Process theories differ from one another in their details, they all agree on the general characteristics of the two systems.
The "system" label is used to describe a variety of processes that share their speed, controllability, and content on which they work.
System 1 processes the information automatically, quickly, holistically, intuitively, does not require cognitive effort and is primarily unconscious. Instead, when we talk about System 2, we refer to explicit, controlled, slow processes with high cognitive, analytical and reflective effort. Distinction in the dual system does not imply that both systems are applied to any problem, or that each system has an exclusive domain of action.
One of the most obvious effects of the crisis we have experienced in recent years was to have violently shaken many of the theories on which a financial system is based.
The perception of reality is a mix of objective knowledge and subjective experiences. In sense neurobiological, in fact, the feeling of being in reality depends on neuronal circuits that connect the cerebral cortex (perception-cognition) to paleoencefalo, i.e., precisely, to the "center of emotions": this means that we have a sense of reality because we have emotions that classify and order our perceptions and knowledge in relation to a sort of affective hierarchy.
The illusion of being bearers of a truth exclusivity is a symptom of a vision of reality much more distorted than you can imagine. The currents of thought more open and less aggiogato to cultural constraints classics, instead see in truth a subjective perception, and then strip.
The transformation process of economy into finance represents a level of development of capitalism in western countries is relatively recent. Move capital, normally, from one side to the other side of the globe and they converge on a title rather than another is a question that requires just a few seconds. In contemporary society, the money obtained quickly and in a relatively extraordinary, evokes a fault which is much more difficult to control the greater is the desire to have more and more. The hypertrophy of the gains made through the transformation process of economy into finance losing sight of the real horizon of the economic system contributing in fact to create a structure that infragilisce more and more and that is every day to be more modest. The dominant ideology of the new way of understanding the economy, does not cease to show on the one hand as the world is dominated by the logic of unlimited wealth is only a viaticum of a future unsustainable, while on the other it has every choice objectively worse in the private and public sphere, as the only reasonably possible. The logical consequence is that of risk management. The risk is now a sociological question that touches in a manner more or less different, people, contexts, situations assuming every characteristics, which in recent years have been exacerbated by the terrorist phenomena are ever more widespread. Risk and uncertainty have a semantic field that overlaps, and are used as synonyms . The risk is a quantified uncertainty, it indicates a potential danger that may arise from an event or by a combination of circumstances, but it is no more than a possibility, it could not happen in a situation foreseen. While the uncertainty differs from this exception since accurately reflects a radical lack of knowledge. The capacity of resistance and tenacity in fighting the adversity respond to the precariousness of the human condition, always oscillating between strength and fragility. When we find ourselves in the situation of having to make a choice that is a financial choice or less, there are different factors, both psychologists and sociological so far as they are relevant to the knowledge of the subjects, which mutually integrated allow you to arrive at the final decision .The study of the choices in situations of uncertainty ranges and then by elements both mathematical and statistical and sociological and psychological, also considering economic aspects-politicians. This observation is also acceptable as regards the financial choices, which is the subject of the present study. This work aims to analyze the usefulness of financial education in the correction of the errors for behavior that influences the choices of individuals. Today is shared thought that investors in deciding on such assets to invest, do not behave in a way which is fully rational and not follow the axioms of the theory of the classical utility that provides the perfect rationality of the subjects and the perfect efficiency of the markets. Individuals would rather seem to be victims of errors the cognitive and emotional, bias and heuristics, that depart from the optimal choice. This optimal choice would be made byhomo economicus. This subject, framed within the theory of expected utility would be perfectly rational and capable, by definition, to use correctly all the information to him available to take decisions that maximize its objective function. Thanks to the creation of this figure economists have been able to formulate elegant theories about the financial choices under conditions of uncertainty, both elegant since, at the same time, scarcely adherent to the reality and just to be able to explain some empirical evidence. The traditional finance postulates that individuals faced with decisions, behave according to three types of rationality. The rationality of the perceptions, i.e. as if all information was captured and processed according to the theory of probability, the rationality of the preferences, i.e. as if the preferences were legacy, stable and coherent and rationality of the process that finally foresees that the subject should seek to maximize their preferences given the constraints of the market. This approach has been for a long time regarded as correct and dettante the useful rules to take the best financial decisions (regulatory approach). In many fields the elements psychological guide the financial choices and affect, even so important in the process of collection and processing of information.
The subject, for example, often take into consideration only the information that underline the goodness of their choice and forget those that are in conflict with the same. They are sometimes guided by what they think is true without giving importance to information of which are in possession, other times you believe knowledgeable and skilled operators of financial instruments being influenced by what was defined overconfidence. Individuals also possess portfolios not diversified enough or not optimal, are affected by what has been called home bias and seight performano because of excessive trading, in particular tend to sell too early titles to positive performance and maintain instead in the portfolio securities with negative performance (disposition effect). A fault that affects instead the market is the so-called equity premium puzzle, this phenomenon describes the fact that in the long term actions performano best of bonds at a rate which is not justified by the classical theory. All these bias, that affect the behavior of choice of individuals and which are not taken into account by the models formulated by the classical theory, are instead from the theories developed by behavioral finance.
Within the study of thought and reasoning, numerous theories (Theory of the Duale Process) have developed which have proposed a distinction between two types of information analysis systems:
• System 1: Fast, automatic and unconscious cognitive processes.
• System 2: slow, deliberative and conscious cognitive processes.
Despite the different Double Process theories differ from one another in their details, they all agree on the general characteristics of the two systems.
The "system" label is used to describe a variety of processes that share their speed, controllability, and content on which they work.
System 1 processes the information automatically, quickly, holistically, intuitively, does not require cognitive effort and is primarily unconscious. Instead, when we talk about System 2, we refer to explicit, controlled, slow processes with high cognitive, analytical and reflective effort. Distinction in the dual system does not imply that both systems are applied to any problem, or that each system has an exclusive domain of action.
One of the most obvious effects of the crisis we have experienced in recent years was to have violently shaken many of the theories on which a financial system is based.
The perception of reality is a mix of objective knowledge and subjective experiences. In sense neurobiological, in fact, the feeling of being in reality depends on neuronal circuits that connect the cerebral cortex (perception-cognition) to paleoencefalo, i.e., precisely, to the "center of emotions": this means that we have a sense of reality because we have emotions that classify and order our perceptions and knowledge in relation to a sort of affective hierarchy.
The illusion of being bearers of a truth exclusivity is a symptom of a vision of reality much more distorted than you can imagine. The currents of thought more open and less aggiogato to cultural constraints classics, instead see in truth a subjective perception, and then strip.
Interesting aspect, especially in the context of the traditional methods of marketing (focus group and interviews) is the function performed by the deliberative system. This system is in fact responsible for the rational justification of the behavior and by neuroscientifici studies showed that it is not able to exert its influence on the decision-making systems that take place below the level of awareness, but on the contrary, in justifying the behaviors performed by the subject, amplifies the importance of the processes that is able to manage, thus providing a justification not objective of what is happening in the brain.