Death by Dashboard

From stocks to fitness to video games, real-time performance data is available everywhere these days. Seeing desirable upward trends feels amazing. But when there's a drop, it can feel like the world is ending.  In this episode of Choiceology with Katy Milkman, we explore what happens when we judge performance too much in the short term. Cora Kennedy takes us inside the world of collegiate esports, where constant performance data shapes how players think and compete—including Cora herself. We also hear from Dan Ginn, who was a smartwatch devotee who checked his fitness data morning, noon, and night—until a serious illness forced him to rethink his habits.  Lastly, Katy speaks with Shlomo Benartzi, professor emeritus, behavioral decision-making, at UCLA Anderson School of Management. Shlomo shares his research on why we tend to overreact to short-term losses—and how this tendency helps explain a puzzle that has long stumped economists.  Choiceology is an original podcast from Charles Schwab. If you enjoy the show, please leave a rating or review on Apple Podcasts. 00:00 Introduction 00:50 The Competitive World of Esports Stats 03:42 This Is Choiceology  04:15 Smartwatch Data Obsession Gone Awry  10:55 Checking Immediate Data Can Sabotage Long-Term Goals  11:46 The Equity Premium Puzzle and Myopic Loss Aversion With Shlomo Benartzi  23:27 Katy Milkman Reflects on Managing Myopia  Important Disclosures The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. This material is intended for general, informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice.  Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.> Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.  The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. Past performance is no guarantee of future results.  Investing involves risk including loss of principal. Fixed income securities  are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk. There are   risks associated with investing in dividend paying stocks, including but not limited to the risk that stocks may reduce or stop paying dividends. The books How to Change: The Science of Getting from Where You Are to Where You Want to Be , Save More Tomorrow and The Smarter Screen are not affiliated with, sponsored by, or endorsed by Charles Schwab & Co., Inc. (CS&Co.). Charles Schwab & Co., Inc. (CS&Co.) has not reviewed the books and makes no representations about their content. (0526-GE5U) Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.