Supreme Court Upholds Affirmative Action Program at University of Texas. Abigail Fisher, right, with Edward Blum, director of the Project on Fair Representation, left the Supreme Court in Washington after oral arguments in her case last December. Her case argued the University of Texas, Austin, had denied her admission based on her race.
Insider Trading. Insider trading is a poorly defined concept with roots in adverse selection theory and the efficient market hypothesis (EMH). The popular notion is that insiders have an unfair advantage because they possess materially significant and non-public information â an informational asymmetry.
#28: Loss Aversion Bias. Often the best response to a losing trade is to cut your losses and sell (often integral to many peopleâs basic risk management trading plans through stops and other devices). A loss aversion bias might prevent you from doing this because the loss is a shock (and can be exacerbated by leverage). This cognitive bias is rooted in the hope of a turnaround. It can be a long wait, especially if you think the upside potential remains strong.