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In this paper the authors experimentally test overconfidence in investment decisions by ordering participants the possibility to substitute their own for alternative investment choices.
Persistent link: https://www.econbiz.de/10005845213
theoretical approach, namelysatisficing or optimality, applicable. Then, they are guided throughthe decision making process where … measured by the adjustments of personal parametersuntil accepting the investment decision suggested by theory.Additionally, a …
Persistent link: https://www.econbiz.de/10005866712
We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices.Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence...
Persistent link: https://www.econbiz.de/10005867326
We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence...
Persistent link: https://www.econbiz.de/10011408444
Previous studies have shown that decision makers are less other-regardingwhen their own payoff is risky than when it is …
Persistent link: https://www.econbiz.de/10005866632
participants become aware of it. In a setting where an investor decides between a riskless bond and either one or two risky assets …
Persistent link: https://www.econbiz.de/10005824112
We experimentally test overconfidence in investment decisions by offering partic- ipants the possibility to substitute their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky as- set, the other with two risky assets....
Persistent link: https://www.econbiz.de/10005765098
The paper explores the applicability of bounded rationality theory. In particular, we investigate whether basic principles of aspiration formation and satisficing behavior are transferable between similar situations. Individuals are sequentially confronted with two risky investment tasks, a...
Persistent link: https://www.econbiz.de/10005765201
theoretical approach, namely satisficing or optimality, applicable. Then, they are guided through the decision making process … approaches is measured by the adjustments of personal parameters until accepting the investment decision suggested by theory …
Persistent link: https://www.econbiz.de/10005252199
participants become awareof it. In a setting where an investor decides between a riskless bondand either one or two risky assets …
Persistent link: https://www.econbiz.de/10005866714