Professor Wang Xiaotian Invited by Dragon Television (东方卫视) to Participate in the Recording of Financial Insights Program

This article is sourced from the official WeChat account of 第一财经.

The Dragon TV program “Financial Insights” invited Professor Wang Xiaotian, Director of the Applied Psychology Program at the School of Humanities and Social Sciences, Chinese University of Hong Kong (Shenzhen), to share insights on the anchoring effect in behavioral finance with the audience. The episode aired on October 23, 2023, at 10:45 PM.

Whether you are hesitating to buy a high-priced item on sale in a store or feeling the urge to buy a stock when it falls below your set psychological price level in the stock market, there is a common and powerful psychological phenomenon at play: the anchoring effect. It pervades our daily lives, shopping decisions, and investment behaviors. Why can the original price tag of a product attract purchases? Why do investors make irrational decisions anchored to a stock’s historical price? How can one identify and counteract this bias? This episode will reveal to you that the first number you hear can become your decision-making “anchor,” but it may not necessarily be the most rational choice.

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