Diao, Linan - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2011
Empirical evidences show that investors tend to be biased toward investing indomestic (home bias) and local (local bias) stocks. Familiarity is considered to be one of thereasons. A similar concept was proposed by Goldstein and Gigerenzer (1999, 2002), known asthe recognition heuristic: “when...