Sense of Control Affects Investment Behavior

Preference for control affects investment behavior. Participants of laboratory experiments invest different amount of money in a risky asset when face with two different methods of control which have identical payoff structure and probability distribution, but provide different sense of control. Preference for controlling and not controlling are both observed. Participants increase their investment when their preferred method of control is used.[...]

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Year of publication:	2010-01-19
Authors:	Li King King
Institutions:	Max-Planck-Institut für Ökonomik <Jena> / Abteilung Strategische Interaktion
Subject:	Finanzierung \| finance \| Portfoliomanagement \| portfolio management \| Risikoverhalten \| Präferenz \| preference \| Kontrolle

1. Introduction
2. Experimental Design
3. Experimental Results
3.1 Preference for Control
3.2 The Effect of Preference for Control on Investment Behavior
3.3 The Effect of Comparative and Non-comparative Mindset
3.4 Further Results on the Influence of Comparative Mindset
4. Conclusion

Persistent link: https://www.econbiz.de/10009022161