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Introduction to QuantLib Development - Intensive 3-day Training Course - September 10-12th, 2018 - Download Registration Form Here

 

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Knowing and Making wrote a new blog post titled “Mysterious psycho-logic”, the “Nudge Unit” and irrational humans: tune in to Leigh Caldwell and Rory Sutherland on BBC Radio 4's show Thought Cages
“Mysterious psycho-logic”, the “Nudge Unit” and irrational humans - Leigh explores cognitive and behavioural economics and science with Rory Sutherland on BBC Radio 4’s show Thought Cages today and on Friday. Tune in at 13:45 today to hear Leigh discussing behavioural and cognitive economics on Thought Cage’s next episode: Instinct Before Logic: The Postbox at the O2. During this episode, Rory and Leigh will be exploring why reason is no longer used to persuade us to change our behaviour,...
16 days ago
Knowing and Making wrote a new blog post titled A new team member and new plans
Hello, today it’s not Leigh posting, but me, Tara, his new colleague! I’ve recently started working for Inon and with Leigh on his cognitive economics work. I’ll be writing content on cognitive economics, spreading the word about cognitive economics to both academic and general audiences and also organising events around cognitive economics. I wanted to take this opportunity to introduce myself and also fill you in on some exciting events on cognitive economics coming up. All cards on the table...
34 days ago
Knowing and Making wrote a new blog post titled Rebuilding macroeconomics
Spending today and tomorrow attending the Rebuilding Macroeconomics conference at the Treasury. The programme looks very interesting - highlights include: Ekaterina Svetlova's opening talk on "Imagining the Future", which I think will be quite relevant to System 3 and an idea I have been working on, prospective expectations: the concept that actors based their decisions not on a Nash equilibrium (rational expectations) or on a simple extrapolation of the past (adaptive expectations), but on...
74 days ago
Knowing and Making wrote a new blog post titled Neuroscience, psychology and economics: the evidence for System 3 (long)
In my last post I outlined the concept of System 3, what it is and why it matters. In short, System 3 is the mental ability to imagine the future and evaluate how happy you will be in it – based on how pleasurable the process of imagining itself is. A lot of different research strands have come together to result in the identification of System 3 as a distinct mental process. I summarise the key steps here: The fundamental building block of System 3 is the stimulus-response relationship. It...
230 days ago
Knowing and Making wrote a new blog post titled Introducing System 3: How we use our imagination to make choices
In recent years we’ve become used to thinking about decisions as “system 1” or “system 2”. System 1 choices are automatic decisions, made without thinking, based on an immediate emotional or sensory reaction. System 2 is used to stop and rationally calculate the consequences of our choices, and determine the best cost-benefit tradeoff. But these two processes don’t capture every decision. Indeed they might only encompass a minority of our daily choices. Recent work in neuroscience and...
230 days ago
Knowing and Making wrote a new blog post titled Book review: The Choice Factory by Richard Shotton
There are few truly universal books on behavioural science: like most of the others, this one has a particular reader in mind. Richard's reader works in advertising, and it must be a rare advertising executive who still hasn't heard of behavioural economics. Richard therefore heads straight into the meat of the book with little beating around the rational-agent bush. A couple of connected anecdotes start us off and we quickly get to the first of 25 chapters, each on a single bias, that make up...
278 days ago
Knowing and Making wrote a new blog post titled A program for cognitive economics
I’m visiting the American Economics Association conference in Philadelphia this weekend and looking forward to catching up with the latest in theoretical and empirical research. Behavioural economics has received another endorsement this year with Richard Thaler’s receipt of the Nobel Prize. The behavioural field still has only a small minority of the conference’s papers, but many more than a few years ago. It finally feels like an accepted part of the broader field. Echoes of a new discipline...
343 days ago
Knowing and Making wrote a new blog post titled The amoeba and the squirrel
[An essay written for the Internet Review, a one-off maybe-to-become-annual publication documenting (and celebrating?) Internet trends] Every human has two minds: one like an amoeba and one like a squirrel. The amoeba mind is reactive, emotional, intuitive. It decides immediately, without planning or consideration. It is Freud’s “id”, or the System One of behavioral economics: the amoeba is your unconscious. Your squirrel mind plans, trades off immediate pleasures for future gain, is capable...
573 days ago
Knowing and Making wrote a new blog post titled The gender pay gap on Euristica: an imaginary island
I recently gave a talk at TEDxCoventGardenWomen about an economic agent-based modelling system I have built (readers of Thomas Schelling may see some influence). In the talk I use this system to analyse ideas around privilege, prejudice and systemic inequality - and to test some policies that might help to solve the persistent gender and racial pay gaps that we still see in most societies. The video is below - your thoughts would be very welcome.
654 days ago
Knowing and Making wrote a new blog post titled Discussion 3 of 3: Lassie died one night
The much-delayed final episode in a short series of posts - part 1 and part 2 here. Lassie died one night. As Thomas Schelling* pointed out in a thought-provoking 1982 essay, millions of people watched it happen on television one Sunday evening, and cried. Yet they all knew Lassie was not real – and that the dog who played her was probably in perfect health. Why did they experience the same emotions, the same sense of loss that they would expect to feel if their own dog had died, or even...
672 days ago
Knowing and Making wrote a new blog post titled How does it feel to be part of Europe?
I had this piece drafted before the murder of Jo Cox last week. But I don’t think it changes anything I was going to say. It simply makes it more urgent to say it. May I introduce you to my two lovely young nieces? Natasha is four months old and Rosalind four years. They live in rural Devon, and they’re just starting to discover the world and decide how to feel about it. I want to think a little about what it might feel like to be in their world. The campaign for Britain to remain in the EU has...
905 days ago
Knowing and Making wrote a new blog post titled Discussion 2 of 3: No spooky action at a distance - a theory of reward
One of the most powerful ideas in physics is the principle of locality. This principle insists that objects can only be influenced by other objects that touch them. Two items separated by a distance cannot directly exert any force or influence on each other, but must communicate via some medium which physically transmits the force from one to the other. Albert Einstein described this principle as "no spooky action at a distance" and it applies to his theory of gravity as well as all the other...
990 days ago
Knowing and Making wrote a new blog post titled Discussion 1 of 3: Where do goals come from?
Discussion number 1 in a series of 3: on goal-setting Much of decision-making psychology (and by extension behavioural economics) explores the processes by which people solve a problem or achieve a goal. Usually the papers in this field contrast the rational, expected-utility way to solve these problems with the approaches people actually use in practice. An important question they rarely address is "Why that goal?" How is it that people choose the particular problem they want to solve, the...
1055 days ago
Knowing and Making wrote a new blog post titled My writing elsewhere
I haven't been very active here recently, but here are some links to my writing on other sites: An article for RW Connect about the UK election polls and how behavioural methods could make polling more accurate.A journal article in the International Journal of Market Research (subscribers only, sorry) about behavioural conjoint analysis methods.An article in the proceedings of the DCAI conference, "When can cognitive agents be modeled analytically versus computationally?"If you don't...
1269 days ago
Knowing and Making wrote a new blog post titled On the identity and methods of behavioural economics
The FT has a very good article from Tim Harford today, surveying behavioural economics and asking some important questions about it. People within a field can be so immersed in their unconscious assumptions and practices that it takes an outsider to point out some of the questions they are not asking. Tim says: The past decade has been a triumph for behavioural economics...[which] is one of the hottest ideas in public policy....Yet, as with any success story, the backlash has begun. Critics...
1726 days ago
Knowing and Making wrote a new blog post titled Catching up on 2013
I didn't intend to stop posting on here when I started my tour. But things overtook me. Here's a summary of what some of them were: My book, The Psychology of Price, came out. You should buy it!I started a new business, The Irrational Agency, with a business partner. We've taken the ideas of behavioural economics into the market research and marketing worlds, and tried to go a bit deeper than some of the agencies who appear to have based their behavioural services on reading the first half of...
1804 days ago
Knowing and Making wrote a new blog post titled The Cognitive Microfoundations Project: a behavioural economics world tour
There has been much talk about microfoundations on the economics blogs in the last few months [Noahpinion, Mark Thoma, Simon Wren-Lewis twice, Andrew Gelman twice, Karl Smith, Paul Krugman twice, Robert Waldmann, Rajiv Sethi from 2009]. The idea of microfoundations is that a model of the overall economy should be consistent with how individual people act. The aggregate behaviour of variables like GDP, government deficits and unemployment should be derived by adding up the choices...
2380 days ago
Knowing and Making wrote a new blog post titled Did he jump or was he pushed; is there a difference?
This New Yorker article about why so many Americans are single reminded me of the debate about unemployment prompted by Casey Mulligan. Here’s why: From the New Yorker: "...do people live alone because they want to or because they have to?" Paraphrasing Mulligan and his critics: “Are workers choosing to be unemployed or are they forced to be?” [actual quotes from Mulligan: "there are sensible people...who will recognize that 2009 is not the time for them to...commute a long distance to...
2413 days ago
Knowing and Making wrote a new blog post titled Behavioural economics: the Kylie Minogue of market research
Do you remember those catchy tunes from the late 1980s? I Should Be So Lucky? The Locomotion? The first time you heard them they were quite fun, memorable even. But then they got more airplay. And more. And more. Radio stations figured out that the sugary, bubbly popness of the tunes would cut through a lot of background noise and get your attention, so they played them again and again. Soon we had Got To Be Certain, and Je Ne Sais Pas Pourquoi, which were exactly the same as the first...
2459 days ago
Knowing and Making wrote a new blog post titled Clearing my tabs for 2012
During 2011 I have probably spent about four days waiting for my browser to respond, due to the number of tabs I habitually keep open. Between the four computers I use, I probably have 200 blog posts in tabs waiting for me to comment. Here are a few of them (in no particular order), so my Chrome may enjoy a faster 2012. A note from Paul Krugman on what makes economics economics. Not a rhetorical discipline but one based on mathematical models. (However, see also Deirdre McCloskey's Knowledge...
2539 days ago