Predictably Irrational

Feeling conflicting emotions this morning? I never get tired of behavioral psychology and evolutionary bio books. Here is a new book out by economist Dan Ariely – Predictably Irrational: The Hidden Forces That Shape Our Decisions

His new blog is here.

In a related theme, can you stickk to your commitments? (Founded by another economist and author of Supercrunchers.)

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I bet a number of hedge fund managers can see the high water mark getting further away. What does that mean for the investor? From AllAboutAlpha:

“Now a new academic study by Sugata Ray and Indraneel Chakraborty at Wharton reveals that messing around with performance fees can have a material impact on the manager’s effort, the fund’s volatility and even the manager’s propensity to “walk away” from the fund altogether. As the authors acknowledge, their findings support common intuition – that managers are more likely to buckle down when the high water mark (”HWM”) is in sight, more likely to swing for the fences when it’s not, and more likely to walk away when they feel it’s totally out of reach.”