Capitalisn’t: Is Short Selling Dead?
Investment manager Jim Chanos discusses short selling’s role in financial markets.
Capitalisn’t: Is Short Selling Dead?The gambler’s fallacy could lead umpires to make the wrong call.
How likely is it for a baseball umpire to call three strikes in a row? As it turns out, the umpire himself may believe that such a streak is unlikely to happen, which could lead him to make the wrong call, according to research by Daniel Chen of ETH Zurich and Chicago Booth’s Tobias J. Moskowitz and Kelly Shue. Umpires may suffer from the “gambler’s fallacy,” or the mistaken belief that a fair outcome implies alternation between balls and strikes, even though consecutive balls or strikes often occur just by chance. After two strikes, the umpire could be wondering if the next pitch will likely be a ball rather than another strike, and indeed call it that way.
Daniel Chen, Tobias J. Moskowitz, and Kelly Shue, “Decision-Making under the Gambler’s Fallacy: Evidence from Asylum Judges, Loan Officers, and Baseball Umpires,” Fama-Miller working paper, March 2015.
Investment manager Jim Chanos discusses short selling’s role in financial markets.
Capitalisn’t: Is Short Selling Dead?Forty percent of commute time savings went back into jobs.
An Upside of WFH for EmployersExperts in finance and economics consider the costs and benefits of the US’s contentious cap on borrowing.
Does the Debt Ceiling Do More Harm than Good?Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.