Why Do We Make Mistakes?

Why is it difficult to make good choices? Making the right choice is difficult for at least three reasons: We might lack knowledge to properly evaluate alternatives, we might lack understanding of how to evaluate them, and we might lack rationality. When analyzing each of these challenges we will answer such questions as: What is the difference between testing positive for COVID and having COVID?

Dominik Roesch is an associate professor of finance in the UB School of Management. His research focuses on market quality, in particular, investigating the joint dynamics of arbitrage, liquidity and efficiency. Several of his papers have been published (or are forthcoming) in the top three finance journals, including the Journal of Finance, the Journal of Financial Economics and the Review of Financial Studies. He has been part of an NSF infrastructure grant, which allowed him to build up a framework (based on OneTick software) to efficiently analyze financial data.