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Purpose - The purpose of this paper is to test the relationship between the annual income earned by the investors and eight behavioural biases exhibited by the investors such as mental accounting, anchoring, gambler's fallacy, availability, loss aversion, regret aversion, representativeness and...
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Does the extent of cheating depend on a proper reference point? We use a real effort task that implements a two (gain versus loss frame) times two (monitored performance versus unmonitored performance) between-subjects design to examine whether cheating is reference-dependent. Our experimental...
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investment decisions, but obtain help from financial investment advisors on how to allocate their wealth. The preferences and … choices of financial advisors are thus important for understanding investment behavior. In this paper we make use of 50 …
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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 …
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The theory of expected utility maximization (EUM) proposed by Bernoulli explains risk aversion as a consequence of … from the terms offered; and subjects often appear to be too risk averse with regard to small gambles (while still accepting … from judgments based on imprecise (and noisy) mental representation of the decision situation. In this model, risk aversion …
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