Similar Search Results

Illusion of Expertise in Portfolio Decisions:An Experimental Approach

Fellner, Gerlinde; Güth, Werner; Maciejovsky, Boris - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2001

This paper focuses on egocentric biases in financial decisions. Subjects first designa portfolio, whereby each combination of assets yields the same expected returnand variance of returns. They are then confronted with two alternative portfolios;the average portfolio and the portfolio of one’s...

Persistent link: https://www.econbiz.de/10005867327

Illusion of control as a source of poor diversification: Anexperimental approach

Fellner, Gerlinde - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2004

illusion of control. By forming their portfolio of tworisky lotteries and one risk-less alternative, subjects are requested to … investment. Also, offering adefault portfolio strongly determines final allocations. …

Persistent link: https://www.econbiz.de/10005866777

Causes, consequences, and cures of myopic loss aversion –An experimental investigation

Fellner, Gerlinde; Sutter, Matthias - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2008

We examine in an experiment the causes, consequences and possible cures ofmyopic loss aversion (MLA) for investment … behaviour under risk. We find thatboth, investment horizons and feedback frequency contribute almost equally tothe effects of … MLA. Longer investment horizons and less frequent feedbacklead to higher investments. However, when given the choice …

Persistent link: https://www.econbiz.de/10005866463

Overconfidence in Investment Decisions:An Experimental Approach

Dittrich, Dennis; Güth, Werner; Maciejovsky, Boris - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2001

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 …

Persistent link: https://www.econbiz.de/10005867326

Recognition-Based and Familiarity-Based PortfolioStrategies – An Experimental Study

Diao, Linan - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2011

more in such stocks”. We conducted an experimentin Jena, Germany to test whether subjects show local bias and use … familiar but not local stocks. Our experiment showsno evidence that familiarity is a reason for local bias. …

Persistent link: https://www.econbiz.de/10009248893

Reinforcement Learning in Repeated Portfolio Decisions

Diao, Linan; Rieskamp, Jörg - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2011

How do people make investment decisions when they receive outcome feedback? We examinedhow well the standard mean … risk and covariance of the investments into account. The experimental results illustrate thatpeople reacted sensitively to … different correlation structures of the investment alternatives, whichwas best predicted by the extended reinforcement model …

Persistent link: https://www.econbiz.de/10009248894

THE EQUITY HOME BIAS: CONTRASTING AN INSTITUTIONAL WITH A BEHAVIORAL EXPLANATION

Fellner, Gerlinde; Maciejovsky, Boris - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2003

An empirically well-established finding is that equity portfolios are concentratedin the domestic equity market of the investor. Previous theoreticaland empirical analyses have mainly focused on institutional explanations andlargely neglected individual behavior. In this study we report the...

Persistent link: https://www.econbiz.de/10005866979

A Note on Skewness Seeking:An Experimental Analysis

Brünner, Tobias; Levinsky, Rene; Qiu, Jianying - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2007

In this paper we experimentally test skewness seeking at the individuallevel. Several prospects that can be ordered …

Persistent link: https://www.econbiz.de/10005866533

Is Satisficing Absorbable?An Experimental Study

Güth, Werner; Levati, M. Vittoria; Ploner, Matteo - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2006

We experimentally investigate whether the satisficing approach isabsorbable, i.e., whether it still applies after participants become awareof it. In a setting where an investor decides between a riskless bondand either one or two risky assets, we familiarize participants with thesatisficing...

Persistent link: https://www.econbiz.de/10005866714

Task Transcending Satisficing - An Experimental Study

Fellner, Gerlinde; Güth, Werner; Martin, Ev - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2006

The paper explores the applicability of the satisficing approach. Inparticular, we investigate whether basic principles of aspiration formationand satisficing behavior are transferable between similar situations.Individuals are sequentially confronted with two risky investmenttasks, a simple and...

Persistent link: https://www.econbiz.de/10005866716