A pervasive feature in the finance industry is relative performance, which can include extrinsic (money), intrinsic (self-image), and reputational (status) motives. In this paper, we model a portfolio decision with two assets and investigate how reputational motives (i.e., the public...

Two aspects of social context are central to the finance industry: (i) financial professionals make investment decisions for customers and (ii) social competition/rankings are a pervasive feature. We link both lines of literature to investigate professionals' risk-taking behavior when investing...

It has been repeatedly shown that in decisions under time constraints, individuals predominantly use noncompensatory strategies rather than complex compensatory ones. We argue that these findings might be due not to limitations of cognitive capacity but instead to limitations of information...

It has been shown that in decision making evaluations of evidence and attributes are modified. In three studies it was investigated if this finding of coherence shifts generalizes to real-world probabilistic inference decisions which are made from given probabilistic cues. Using a...

In two experiments we studied the effects of behavioral models on routine deviation decisions in observers. Participants repeatedly chose among four card-deck lotteries together with a human model (confederate, Exp. 1) or a non-human model (computer, Exp. 2) that made correct decisions in the...

Time preferences drive decisions in many economic situations, such as investment contexts or salary negotiations. These situations are characterized by a very short time frame for decision making. Preferences are potentially susceptible to the confounding effects of time pressure, as proposed by...