Categorical thinking can lead to investing errors
New research provides insight on when and why investors rely on indexes or categories to make decisions rather than investigating each individual stock.
Faculty
Rahul Bhui is an Assistant Professor of Marketing and the Class of 1958 Career Development Professor at the MIT Sloan School of Management, and faculty affiliate of the MIT Institute for Data, Systems, and Society.
His research combines cognitive science, computational neuroscience, and behavioral economics to reveal the deep unifying principles that capture both rationality and irrationality. His work has been published in peer-reviewed journals such as Proceedings of the National Academy of Sciences, Management Science, Nature Communications, Psychological Review, and Psychological Science, and featured in media outlets such as USA Today, the LA Times, and Scientific American.
Prior to joining the faculty at MIT, Rahul was Mind Brain Behavior Postdoctoral Fellow in the Departments of Psychology and Economics at Harvard University. He holds a BA (Honours) in economics from the University of British Columbia, as well as an MS in behavioral and social neuroscience and a PhD in computation and neural systems from Caltech.
Featured Publication
"Resource-Rational Decision Making."Bhui, Rahul, Lucy Lai, and Samuel J. Gershman. Current Opinion in Behavioral Sciences Vol. 41, (2021): 15-21.
Bhui, Rahul and Rachit Dubey. Decision. Forthcoming.
Schulz, Lion, and Rahul Bhui. Trends in Cognitive Sciences Vol. 28, No. 3 (2024): 210-222. PDF.
Dubey, Rachit, Mathew Hardy, Thomas L. Griffiths, and Rahul Bhui. Nature Sustainability Vol. 7, (2024): 399-403. News & Views.
Schurr, Roey, Daniel Reznik, Hanna Hillman, Rahul Bhui, and Samuel J. Gershman. Nature Human Behaviour (2024). PDF.
Bhui, Rahul and Peiran Jiao. Management Science Vol. 69, No. 9 (2023): 5394-5404.
New research provides insight on when and why investors rely on indexes or categories to make decisions rather than investigating each individual stock.
Skeptics are more likely to approve of sustainable infrastructure when shown AI-enhanced images of how green cityscapes might look, research finds.
Mendacity and the uncritical repetition of blatant lies can chip away at our ability to assess the plausibility of other, unrelated news stories.
Rahul Bhui discusses how understanding situations and perspectives influences decisions by addressing audience concerns and gaining trust.
"Is the grass greener in other societies?...would you have more leisure time if you packed up and moved to a remote village in the Amazon?”