This experimental study investigates whether individuals prefer bounded rationality over rational choice theory when facing simple investment tasks. First, participants state some personal parameters that serve as an input to render a theoretical approach, namely satisficing or optimality,...

Overall, 72 subjects invest their endowment in four risky assets. Each combination of assets yields the same expected return and variance of returns. Illusion of expertise prevails when one prefers nevertheless the self-selected portfolio. After being randomly assigned to groups of four subjects...

In an overlapping generations-experiment with multiple families participants can either support their parents directly and thereby reduce their tax burden or hope for tax-financed old age support. State productivity is captured by the factor with which total tax revenues are multiplied to...