Subject : Belief Updating in Individuals and Price Updating in Markets
Guest Lecturer : Professor Daniel Zizzo
Date : 2nd September 2024
Program : B.Sc. Economics (Semester V), Sarla Anil Modi School of Economics
Duration : 1 hour
Mode : In-person
Number of Students : Approximately 52
Summary:-
Profile : Professor Daniel Zizzo, Academic Dean and Head of School School of Economics, University of Queensland, Australia
On 2nd September 2024, Professor Daniel Zizzo, Academic Dean from the University of Queensland, conducted an inperson workshop from 11.30 am to 12.30 pm in classroom 311 and was attended by 108 students workshop for the B.Sc. Economics (Semester V) students of Sarla Anil Modi School of Economics.
This workshop aimed at introducing students to the phenomenon of belief updating in individuals in the absence of rational expectations, that is, providing evidence that belief conservatism may be found at both individual and market levels, to show that individual characteristics may or may not extrapolate to market level price dynamics.
The workshop explored belief updating, where individuals adjust their expectations based on new information, often imperfectly. A key focus was belief conservatism, the tendency to hold onto initial beliefs despite contradictory evidence, which affects both personal decisions and broader market behavior. This concept highlights that individual traits do not always directly translate into market-level dynamics, such as price movements. The session also demonstrated how cognitive biases at the individual level can shape collective behavior in economic systems. Additionally, the URN task provided insights into how people make decisions and handle uncertainty in real-world scenarios.
