investment choices) depend on the decisions of their peers. One hypothesized cause of peer group effects is social interaction …

children apply it as a choice heuristic. We report on results of an experiment that tests whether children diversify in a … diversification, both for the sake of variety across consumption goods and for the purpose of mitigating risk when faced with a choice … between risk aversion and diversification and find no significant connection between the two. Our results indicate that …

It is shown how to test revealed preference data on choices under uncertainty for consistency with first and second … order stochastic dominance (FSD or SSD). The axiom derived for SSD is a necessary and sufficient condition for risk aversion …. If an investor is risk averse, stochastic dominance relations can be combined with revealed preference relations to …

decision. We find that investment decreases as a result of transitions from the first to the third level and we even observe … lower investments in case of positive changes in income. Investment decreases most if negative valuation adjustments are …-based decreases in net income. For larger positive and negative adjustments the impact of valuation levels on investment turns out to …

In this paper we investigate how volatility shocks influence investors' perceptions about a stock's risk, its future … development, and investors' investment propensity. We ran artefactual field experiments with two participant pools (finance … professionals and students) that had to take investment decisions, differing in (i) the direction of the shock (down, up, straight …

increases in investors' risk aversion which in turn increases investors' proneness to familiarity bias. I hypothesize that …

We study three fundamental components of financial agency settings: Perception and communication of investment profiles … investment profile terminology is very heterogeneous, resulting in substantial miscommunication between clients and agents …. Financial agents show a high willingness to implement their clients’ preferred investment profiles independent of monetary …

I exploit a natural experiment to show that household investment decisions depend on the manner in which information is …