Quantitative reasoning methods that scientists routinely employ can expose deceptive advertising practices. The presentation will analyze common offers for mortgages, and auto loans to show how marketers use numbers to mislead consumers. Modern advertising methods use deceptive mathematical statements combined with behavioral finance models to re-frame financial losses for consumers as financial gains. The deceptive frames intentionally subvert normal operation of the market by inducing consumers to act contrary to their financial interests. Consumers from all economic backgrounds can benefit by learning some basic tools from quantitative analysis. Science can benefit society by teaching how quantitative reasoning can improve daily financial decision-making.
|Keywords:||Deceptive Advertising, Quantitative Reasoning, Mortgages, Loans, Behavioral Finance, Financial Math, Consumers|
Professor of Physics, Department of Physics, Loyola University Maryland, Baltimore, Maryland, USA