Behavior Paradigms

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Rationalist vs. Behavioralist Paradigm Problems 1. During the last five years, your instructor has discussed the emerging field of behavioral finance with many colleagues. The most common reaction has been for those colleagues to smile and say, "Behavioral finance? That's an oxymoron." Oxymoron is defined as a combination of contradictory or incongruous words (e.g. cruel kindness). Explain this reaction using a) the concept of paradigm and b) attributes of the behavioral and rational paradigms. a) According to the concept of a paradigm, someone in finance would operate on a set of principles that their work is based upon. It is the method by which they analyze their data. Under this philosophy the statement is considered an…show more content…
Kuhn has been even more distressed by those who admiringly misinterpret him. “I’ve often said that I am much fonder of my critiques than my fans,” he comments. In the 1960s his work was seized on by radicals opposed to science and its offspring, technology, and indeed to any “cognitive authority that might distort “pure experience.” Kuhn recalls students telling him, “Oh, thank you, Mr. Kuhn, for telling us about paradigms. Now that we know about them, we can get rid of them.” a) How would Kuhn address the criticism that he is claiming science to be nothing more than “power politics” or “mob psychology? b) He described it this way because sometimes scientists or people of science follow the convention of multiple people with valid theories. They follow what was tested or theorized and expand their research from that. It is similar to politics in that there is one individual that attempts to persuade the many to follow them and that their ideas are the truth through experimentation. He would address the criticism by reminding those that he still believes in science and that the idea of a paradigm is not completely a bad thing, for if you can identify it you can strive to get rid of it and progress in your thinking. b) Did the 60s radicals rid the world of paradigms? Why or why not? No, the concept
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