12/31/2023 0 Comments Moneyhouse informationskapitalismus![]() ![]() ![]() When an individual considers gains as distinct from wealth and is willing to take greater risks with the gains, the house money effect has taken place. The psychological thinking of cognitive bias behind the house money effect is that people segregate between capital and profits and consider profits lesser than capital, hence, taking higher risks or gambling with it. ![]() For instance, if an investor wants to reinvest the profit on an investment on stocks, futures contracts or bonds, the investor would take greater risks on it. The house money effect describes the tendency of investors to enter investment positions with higher risks simply because they already made profit from the initial investment. Back to: INVESTMENTS & TRADING How Does the House Money Effect Work? The house money effect was developed by Richard Thaler and Eric Johnson in their paper titled "Gambling with the house money and trying to break even." The house money effect first originated from casinos or gambling in which gamblers after making significant gains continue to play with the house money. This bias explains the tendency of investors to take on greater risks because they already earned profits from their investments, these risks would not have been taken at the initial investment. The house money describes a cognitive bias in which investors take higher risks when reinvesting than they would when investing their initial capital. Letting Winners Ride What is the House Money Effect? This process is experimental and the keywords may be updated as the learning algorithm improves.Update Table of Contents What is the House Money Effect? How Does the House Money Effect Work? The House Money Effect vs. These keywords were added by machine and not by the authors. The newly evolving informational economy is a reflection of the social and political changes taking place in the world at large due to various factors, most notably the globalisation of businesses and the increasing global integration of local and national economies and markets. Economic changes do not take place in a political-economic vacuum. The morphing of industrialism into informational capitalism occurred with a fundamental change in the meaning and significance attributed to knowledge as well as the changing relationship between capital, labour and knowledge. It indicates a rupture of industrial capitalism and the evolution of an entirely new economic dynamics. Also, it is not merely a form of hyper-industrialism or post-Fordist flexible production arrangement. Information or knowledge capitalism is not a continuation of industrial capitalism by other means. Information capitalism is referred to as the economic logic of post-industrialism that posits a rupture in the articulation of industrial capitalism, which was based on social labour, industrial capital, manufacturing and bulk production. The far-reaching social, economic and political changes due to recent advances in information and communications technologies (ICTs) in tandem with the globalisation of trade, investment, production and consumption have heralded the rise of ‘information capitalism’, or ‘knowledge capitalism’. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |