The Heuristic Revolution in Finance

A small group of scientists from psychology and economics and practitioners from the field of finance met to start a heuristic revolution in finance from 27th to 29th of March in Hertenstein, Switzerland. The conference was organized by Thorsten Hens, Florian Artinger, Shabnam Mousavi, and Jörg Rieskamp. It took place at an extremely nice venue close to the Lake Lucerne and was generously funded by Peter Püringer, a successful carry trader, who basically made use of differences in interest rates across countries. In workshops and presentations, the participants discussed how heuristics can inform financial decision making. For example, we discussed the performance of the 1/n rule for investing in stocks compared to more complex financial models like Markowitz’s Portfolio Theory. In small group discussions we exchanged academic and practitioner’s perspective on topics like retirement savings, financial advice, financial literacy, and portfolio selection. All these areas turned out to be very interesting for psychologists to supplement financial theory with empirical studies of decision-making. We, Jörg Rieskamp, Rui Mata, Jana Jarecki, Janine Hoffart, Steve Heinke, and Sebastian Olschewski, were happy to be part of this very special conference.

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