Improving Alpha: A Zero Sum Behavioral Psychology Approach for Innovative Allocators

Recorded by: Michael Oliver Weinberg | Vidrio

In the world of finance, there are many discussions around the topics of economic challenges or inequality when it comes to how asset managers or asset owners navigate the market. The volume certainly increases on this theme around bonus time when performance incentives are being paid out despite market volatility and declining returns.

 In this episode, Michael Oliver Weinberg, co-founder, Improving Alpha Podcast Series, is joined by Shai Davidai, Assistant Professor, Management Division, Columbia Business School, to go under the hood of economic behavioral psychology at work across asset managers and owners.

Shai discusses: 

  • How economic inequality is different from economic mobility and why we tend to overestimate upward mobility. 
  • How philanthropy factors into the internal attributions that people assume about the person that is promoting their Giving Pledge.
  • How does the hypothesis of a zero-sum game factor into an asset manager or owner’s strategic plan?
  • How does the zero-sum game tie itself into organizations and retaining talent by offering either a zero-sum incentive program vs. a non-zero-sum program.
  • And more!

Related: Strategies for Clients To Build a New Future