That's Interesting

  • Longitudinal evidence that infants develop their imitation abilities by being imitated

    Theoretical advances in social sciences over the last century purport imitation as a central mechanism for the emergence of humans’ unique social-cognitive abilities.  Uncovering the ontogeny of imitation is therefore paramount for understanding human cultural evolution.

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  • 5 things serious coffee fans should know

    A look at the science behind the beverage that 63% of Americans drink daily (more than tap water), according to the National Coffee Association.

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  • An update on eukaryotic viruses revived from ancient permafrost

    One quarter of the Northern hemisphere is underlain by permanently frozen ground, referred to as permafrost. Due to climate warming, irreversibly thawing permafrost is releasing organic matter frozen for up to a million years, most of which decomposes into carbon dioxide and methane, further enhancing the greenhouse effect. Part of this organic matter also consists of revived cellular microbes (prokaryotes, unicellular eukaryotes) as well as viruses that remained dormant since prehistorical times.

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  • Pointless: the climate impact of frequent flyer status

    Frequent flyer programs (FFPs) are a key part of the business model of ‘full-service’ airlines, driving not just ticket sales, but increased flight provision.  FFPs increase air travel emissions by incentivising the most carbon-intensive seating options and encouraging additional flights. This article assesses the emissions associated with gaining different levels of membership in the frequent flyer programmes offered by British Airways and Virgin Atlantic.

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  • Frequent Flying’s Dirtiest Habit: Mileage Runs

    Imagine taking a flight you don’t want or need, to stretch your legs in the destination airport before heading straight back. For years, frequent flyers have been taking mileage runs – also sometimes referred to as segment runs or tier point runs – solely to maximize the airline points or reward status they accrue. On message boards and social media, they trade nerdily specific details of flight routes, airline promotions, and reward tiers, calculating the exact itineraries that will bring them to a certain status or keep them there.

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  • Behavioral Machine Learning? Computer Predictions of Corporate Earnings also Overreact

    There is considerable evidence that machine learning algorithms have better predictive abilities than humans in various financial settings. But, the literature has not tested whether these algorithmic predictions are more rational than human predictions.

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  • Not even the machines are rational

    For 50 years, behavioural economics has thrown the gauntlet at the rational expectation hypothesis and the concept of homo economicus. But now, rationality could fight back. AI and machine learning algorithms have become so powerful that their forecasts can compete with analyst forecasts (at least before transaction costs) and these algorithms certainly aren’t biased like humans are. Or are they?

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  • Revealed Beliefs about Responsible Investing: Evidence from Mutual Fund Managers

    What do asset managers — a group of presumably sophisticated investors — believe regarding the financial performance of Environmental, Social, and Governance (ESG) investment strategies? This article addresses this question by exploring the relationship between US mutual fund managers’ incentives to deliver high returns and their portfolio ESG performance.

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  • Speed and Expertise in Stock Picking: Older, Slower, and Wiser?

    There are significant differences among sell-side analysts in how frequently they revise recommendations. This article shows that much of this variation is an analyst-individual trait, with analysts who change recommendations more slowly make recommendations that are more influential and generate better portfolio returns.

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  • Bloated Disclosures: Can ChatGPT Help Investors Process Financial Information?

    Generative AI tools such as ChatGPT can fundamentally change the way investors process information. A probe into the economic usefulness of these tools in summarizing complex corporate disclosures using the stock market as a laboratory, shows that unconstrained summaries are dramatically shorter, often by more than 70% compared to the originals, whereas their information content is amplified.

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