Filene researchers Jonathan Zinman and Victor Stango of Dartmouth College share insights from a research brief that highlights the consumer’s intuitive assesment of complex math problems and how this affects decision making. The findings: Most people “are biased towards making mistakes that lead to borrowing too much or saving too little.” How can credit unions counteract this bias and help consumers avoid the pitfalls? Listen to author Jonathan Zinman discuss implications for credit unions from this new body of research:
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Stango and Zinman provide speculation on the market implications and possible public policy changes based on evidence from thier “fuzzy math” research thus far. Download their research brief in its entirety.
Read this The Wall Street Journal article on this subject quoting Stango and Zinman.
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First of all, congratulations on this podcast integrated on this blog. I come across many blogs, but not many have podcasts. The topic of this podcast is really interesting. Not many people would combine Fuzzy Math with Decision Making in Consumer Households…
I do agree with the statement that [...non-deposit taking institions try to hide the actual price of borrowing] and [...many people perceive loans cheaper (than the true cost) as they really are].
I have to listen again, because this podcast is packed with information. E.g. the relationship between the 2000 election of Bush and Al Gore and fuzzy math.
Interesting!
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Interesting article indeed! For all the readers from The Netherlands I wrote a transscript of the podcast in the Dutch language. Just visit our website and send me an email (with a reference to this blog) to receive your copy, free of charge .
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