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Ep. 270: Laurie Santos Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Quantitative Match Between Monkeys and Humans

The researchers used a long-held human standard that people tend to treat or tend to attend losses about twice as much as gains. The monkeys, in all that cases, we gave them, they got exactly the same amount of food. But we could vary whether the monkeys thought of it as a loss or a gain. And so one of the first things we saw is that the monkeys seemed to track these losses in gains. In other words, how much they were paying attention to this loss frame. It was quantitatively pretty similar to what we saw on humans. It's got a two to one ratio.

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