Economist Wins Genius Grant For Proving That Most Traders Are Idiots

[UrbScotty]

One of the winners is a CalTech economist most famous for calling traders idiots.

In 2010, Dr. Colin Camerer co-authored, "Using Neural Data to Test A Theory of Investor Behavior: An Application to Realization Utility." It is his most downloaded paper, according to the St. Louis Fed.

Camerer and his co-authors found that the "realization utility" model of investing is way more prevalent than it should be.

"Realization utility" describes the phenomenon of a given trader being more prone to taking "realized gains," or immediate profits, than to allow "paper gains" to linger on their theoretical balance sheet.

http://www.businessinsider.com/colin-camerer-wins-genius-grant-2013-9#ixzz2gCksNDs8

[mopinko]

1. they are junkies.

high on money.