Colin Camerer, Robert Kirby Professor of Behavioral Economics at Caltech, will deliver “Neural Evidence of Trading Biases and Asset Bubble Formation,” NYU’s Annual Dean for Science Lecture in Neuroeconomics, on Tuesday, March 10, 4 p.m. at NYU’s Kimmel Center for University Life.
In his lecture, Camerer, a pioneer in behavioral economics and in neuroeconomics, will focus on financial decision-making, which weighs both risk and reward. His presentation will outline two strands of research that offer insights into this process.
One research strand aims to understand the neural encoding of value gained from purely “realizing” a gain or loss, which explains why people sell “winning” stocks with accrued capital gains too early and hold “losers” too long. The second research strand creates laboratory bubbles in which prices increase far above simple intrinsic, fundamental values, then predictably crash. Together, these strands suggest our brains have a “reward-tracking” signal, which seems to motivate “momentum” investors who “chase returns” (and do poorly) and a forward-looking signal associated with selling before the crash to cash in, which creates success.
The event is free and open to the public. To RSVP, please email dean.lec@nyu.edu. Space is limited. For more information, call 212.998.8030. Reporters interested in attending must RSVP to James Devitt, NYU’s Office of Public Affairs, at 212.998.6808 or james.devitt@nyu.edu. Subways: A, B, C, D, E, F, M (W. 4th St.).
The lecture is hosted by NYU’s Institute for the Interdisciplinary Study of Decision Making (IISDM) and sponsored by the university’s Dean for Science.