Summary
The mission of the AB Advisor Institute is to share findings from the behavioral sciences that can directly impact the commercial success of an advisory practice. One of the most important insights from the discipline of behavioral economics is the idea that much of human decision-making is controlled by nonrational, automatic mental shortcuts known as heuristics.
Scott and Ken explore the strengths and weaknesses of the research and discuss how advisors can use insights from behavioral economics in their work with clients. Advisors learn how one of the most common heuristics, narrow framing, impacts the advisor-client relationship. The goal is to teach advisors to work more effectively with clients by understanding how heuristics influence the day-to-day decision-making of high-net-worth clients.