Home bias

Do you prefer to bet on the increase of the Dow Jones or the CAC40 on the first of next September? Do you prefer to bet on the decrease of the Dow Jones or the CAC40 on the first of next September? These questions have been asked in many experiments on behavioral finance to MBA…

Better now than later…

What would have been our worst torture in our childhood? Perhaps the Marshmallow test! Let’s imagine we are given a marshmallow and asked to wait for 10 minutes to get another one under the condition that we do not eat the original marshmallow. The test in images:   The Marshmallow effect in our neurons! Adults…

Ambiguity averse?

Author: Tiphaine Saltini As a CFO, we can choose to invest in between three options: We get €500.000 We invest in a stock with a 50% of chance of earning €1M or nothing We invest in an industrial project on which we have little information except that we can earn €1M, if it is successful or…

Innovative Brain!

    When talking about innovation processes and creative cognition, we hypothesize that some ways of thinking and treating information are better to generate ideas. In cognitive psychology, this way of thinking is called divergent thinking, which is in opposition to the classical way of thinking called convergent thinking. Better understanding how the brain works,…

Biases and Startup valuation

      We are offered a proposal to invest in a very innovative software start-up. The founder has a very atypical professional and academic background. As the start-up is still at the project stage, we have no data on historical cash flows. Moreover, the project is so innovative that using start-ups from the same sector…