Applied behavioral economists are working for you and your clients

 

Balancing Goals, Preferences and Constraints

 

Stated vs. Revealed Preferences

 

The Math Behind TrueProfile

 

What is Decision Consistency?

 

What is Risk Tolerance?

 

What is Loss Aversion?

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Shachar Kariv

Co-Founder
Capital Preferences LTD.

"Applying the science of revealed preferences to understand clients is like the arrival of the X-ray machine in medicine.  It lets us see--with great precision--that which we could not hope to understand thru dialogue or questioning alone."

Explore the breakthrough academic work that gave rise to TrueProfile

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White Paper
The Advisor Who Knows the Client Best, Wins
Why regulators, advisers and clients are demanding science-based profiling.
American Economic Review,
May 2007
Revealing Preferences Graphically: An Old Method Gets a New Toolkit
A groundbreaking graphical tool enables practical recovery of individual preferences.
White Paper
New Ground in Financial Risk Tolerance
Capital Preferences offers four scientific tests that consistently and confidently profile clients, addressing those critical questions of risk-tolerance, capacity for loss and investment suitability.

Leveraging our team’s breakthroughs in game theory and econometrics, TrueProfile is the only profiling method to achieve publication in the top scientific journals of the world and to be tested across the most robust research panels in academia.

Science, July 2014
Harnessing Naturally Occurring Data to Measure Response of Spending to Income
Insights about the sensitivity of spending to the arrival of anticipated income.
Quantitative Economics, July 2014
Estimating Ambiguity Aversion in a Portfolio Choice
A portfolio-choice experiment that enables estimation of parametric models of ambiguity aversion at the level of the individual subject.
American Economic Review,
June 2014
Who is (More) Rational?
Revealed preference theory and decision-making quality.
Proceedings of the National Academy of Sciences,
November 2017
Social preferences of future physicians
Revealed preferences methods illustrate social preferences of future American physicians.

The Team Behind the Science

Shachar Kariv
Co-Founder

Shachar is Co-founder at Capital Preferences LTD, parent company to the TrueProfile™ subsidiary. Shachar is also a Benjamin N. Ward Professor of Economics and the recent Chair of the Economics Department at the University of California, Berkeley—recognized as one of the world’s most impactful and influential economics institutions.  Shachar is widely regarded as the top decision theorist and game theorist in the world.

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Dan Silverman
Head of Research

Dan is a microeconomist whose research blends economic theory and econometrics to study how public and private policies influence decision-making. His recent work levers “big data” and novel blends of surveys and experiments to gain insight into the quality of spending and saving choices, especially in the years leading up to and after retirement. Dan’s prior work on insurance choices in retirement received the 2009 iHEA Arrow award for the best paper in health economics.

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J. Womack
Chief Administration Officer and Head of Investment

J. heads up Administration, and drives the ongoing research and quantitative analysis development at Capital Preferences, Ltd. He has extensive experience delivering large scale programs from his history in billion-dollar program management in the defense sector.  His investment career includes success in portfolio management, asset allocation and investment strategy, multi-manager and multi-asset-class product development and portfolio construction, risk management, quantitative analysis, and front and middle office systems implementation. His ability to transform industry and investment insights into marketable products and services has allowed him to lead several successful product and service launches during his career.