Mind Over Money Accounting, Finance, SPSS Essay Paper (Essay Sample)

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Mind Over Money
Introduction
The film, Mind Over Money, by NOVA producers, was documented in 2008 following a crash on the stock market. The producers sought to give insight into what led to the crash, why mainstream economists failed to predict the crash, and why people often make irrational financial decisions. To bring out the idea, several experiments are carried out in the film. In the experiments, people spend on a particular object to illustrate the power of their emotions and the decision to buy is interwoven. The NOVA producers explore whether decisions regarding purchase that people make in the market are calculated or anchored on feelings. Classical economics contend that investors are reasonable and always operate in their economic self-interest ( HYPERLINK "https://www.rottentomatoes.com/celebrity/malcolm_clark"
Clark). The assumption, however, does not always apply because, in extreme situations, people panic and conventional theories no longer hold. Arguably, the program reveals how people’s emotions interfere with their decision-making. In the advent of the recent crash, it is of interest to determine whether new science that seeks to incorporate human psychology into finance - behavioral economics – would be invaluable in enabling people to make better financial decisions.