Introduction

The typical carrot-and-stick approach to ethics assumes that people faced with ethical dilemmas conduct a conscious, deliberate, cost-benefit analysis before making decisions. ‘Bad’ people make the unethical choice. Yet, the behavioural sciences have shown us that our decision-making is often non-conscious and automatic. Even ‘good’ people, therefore, could stumble into bad choices.

Part of the Finology short course, Behavioural Finance - Investment Decision-Making, this lecture examines insights from the behavioural sciences that can ...