Stages of investing generated using the model of hierarchical complexity.

Abstract

Most theories and studies of decision making are a-developmental. However, there is ample evidence that there are differences in behavior on many decision-making tasks between children and adults. This article asserts that within adults there are differences in behavior on many decision-making tasks and discusses investment as a decisionmaking task where differences in adult behavior can be analyzed. It presents an argument that stage theory can predict investment behavior. The major properties of investment behavior are (a) how many variables a person can look at and (b) whether a person can compare systems and understand that regulations are incomplete and not consistent. We propose that the rational theories of investing fail because most economic theories assume perfectly rational players in the market place. One of the major reasons that private investors do terribly in managing and investing money is the inadequate stage development of the investors on the task of investing.

Employee management using behavioral developmental theory.

“…One version of predictive validity for these purposes is whether or not a set of behavioral measures shows that an employee is suited for his/her position, or, in other words, his/her job fit. We posit that there are just two variables that capture most of the variance defining job fit (Commons, 2015; Commons & Thexton, 2015). First, is the person “smart” enough to excel at the tasks?…”

Advances in the model of hierarchical complexity (MHC).

“…The other variables only made very small contributions. Commons, M. L., & Thexton, C. S. (2014). Stages of investing using the model of hierarchical complexity.…”

“…Commons, M. L., & Thexton, C. S. (2014). Stages of investing using the model of hierarchical complexity.…”