The paper analyses on an experimental basis the phenomenon of non-optimal under-diversification in portfolio choice decisions and investigates the reasons behind it. The most important obstacles for optimal diversification are studied the correlation neglect hypothesis and the overconfidence...

Status quo bias is a systematic cognitive error which makes it difficult for individuals to make decisions independently of the currently dominant situation. This study pursues the question of whether bond market analysts are affected by status quo bias. We evaluated interest rate forecast...

The paper aims at defining the role of intentions for reciprocity. The ultimatum game is modified, by adding a kind of randomizer (Chinese Whisper), to generate outcomes which are not intended und thus to separate the proposers' initial intentions from their actual offers. The mechanism ensures...

This paper provides an economic justification for the protection of cultural property rights of indigenous groups. Cultural property either in the form of traditional knowledge or folklore carries the potential to increase wealth by adding to the knowledge base of an economy. But in order to...

In der deutschen Volkswirtschaftslehre wird ein Streit zwischen Anhängern der Ordnungspolitik und Anhängern der formal-theoretischen Ökonomik ausgetragen. Die Ordnungspolitiker setzen dabei vor allem auf Regeln und Institutionen, die der Marktwirtschaft einen Rahmen geben sollen. Den...

Seit langer Zeit konkurrieren monetäre und nicht-monetäre Ursachen bei der Erklärung von Inflation. Während Milton Friedman («Inflation is always and everywhere a monetary phenomenon») die erste Position vertritt, finden z.B. Paul Samuelson oder John Cochrane auch Argumente für...

Within the framework of a laboratory experiment, we examine to what extent algorithm aversion acts as an obstacle in the establishment of robo advisors. The subjects had to complete diversification tasks. They could either do this themselves or they could delegate them to a robo advisor. The...

Zinsprognosen spielen eine bedeutende Rolle für verschiedene Bereiche des Bankgeschäftes. Die Auswertung von historischen Prognosezeitreihen von 19 prominenten deutschen Bankhäusern nährt allerdings erhebliche Zweifel daran, dass die Anstrengungen zur Prognose der künftigen Zinsentwicklung...

Reputational herding has been considered as a driving force behind economic and financial forecasts clustered around consensus values. Strategic coordination can consequently explain poor performances of prediction markets as resulting from the distinct incentives that forecasters face. While...

Technological progress in recent years has made new methods available for making forecasts in a variety of areas. We examine the success of ex-ante stock market forecasts of three major stock market indices, i.e., the German Stock Market Index (DAX), the Dow Jones Industrial Index (DJI), and the...