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We investigate whether two heuristics, the peak-end rule and herding, lead to cognitive biases in the index of consumer sentiment published by the University of Michigan. Both affect respondents' assessment of changes in their financial position over the past year. Consistent with the peak-end...
Persistent link: https://www.econbiz.de/10012871386
We investigate whether two heuristics, the peak-end rule and herding, lead to cognitive biases in the index of consumer sentiment published by the University of Michigan. Both affect respondents' assessment of changes in their financial position over the past year. Consistent with the peak-end...
Persistent link: https://www.econbiz.de/10012025977
, we show that regret aversion (unobservable bias) significantly reduces extremeness aversion (observable bias) and … mediates the influence of cognitive regulatory focus (unobservable bias). …
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's presence. Monetary incentives reduce the average bias to one-third of its original value. Additionally, the average anchor bias … abilities are on average less biased toward the anchor when task complexity is high. The anchoring bias in our repeated game is …
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