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Vlcek, Martin; Wang, Mei - Institut für Schweizerisches Bankwesen <Zürich> - 2007

We conduct controlled experiments in order to analyze individual trading behavior. Our results suggest that investors measure their gains relative to their initial wealth, and that this reference point together with past stock price changes determine the portfolio choices. Subjects choose a...

Persistent link: https://www.econbiz.de/10005858051

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 asset, the other with two risky assets. Overconfidence...

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

Overconfidence in Investment Decisions: An Experimental Approach

Dittrich, Dennis; Güth, Werner; Maciejovsky, Boris - 2001

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

Making Prospect Theory Fit for Finance

De Giorgi, Enrico; Hens, Thorsten - Institut für Schweizerisches Bankwesen <Zürich> - 2006

) are descriptive models for decision making that summarize several violations of the expected utility theory. This paper …

Persistent link: https://www.econbiz.de/10005858528

Strategische Asset Allokation aus Sicht des privatenKapitalanlegers

Walther, Ursula - Technische Universität <Freiberg> - 2002

Kapitalanlegers. Eine fundierte Entscheidung erfordert einen mehrstufigen,strukturierten Prozess. Der Anleger muss sich mit den …The strategic asset allocation is the most important decision an investor undertakes. An adequatefoundation requires a … decision. Butthe discussion of the various decision parameters clearly shows that any allocation decisionuses a substantial …

Persistent link: https://www.econbiz.de/10005864497

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

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

This paper investigates factors influencing individual portfolio allocations withparticular focus on the role of illusion of control. By forming their portfolio of tworisky lotteries and one risk-less alternative, subjects are requested to reach a targetinvestment profit, whereby equal...

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

Do investors optimize, follow heuristics, or listen toexperts?

Gehring, Thomas; Güth, Werner; Levinsky, Rene; Popova, Vera - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2008

In the experimental scenario several agents repeatedly invest in n (n _ 2)state-specic assets. The evolutionarily stable and equilibrium (Blume andEasley, 1992) portfolio for this situation requires to distribute funds accordingto the constant probabilities of the various states. The dierent...

Persistent link: https://www.econbiz.de/10005866439

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

Portfolio Choice in the Presence of Nontradeable Income: An Experimental Analysis

Klos, Alexander; Weber, Martin - 2004

This paper reports the results of an experiment on portfolio choice in the presence of nontradeable income. The nontradeable income part could either be riskless or risky (background risk). (...)

Persistent link: https://www.econbiz.de/10005844821

Illusion of Expertise in Portfolio Decisions: An Experimental Approach

Fellner, Gerlinde; Güth, Werner; Maciejovsky, Boris - Max-Planck-Institut zur Erforschung von … - 2001

This paper focuses on egocentric biases in financial decisions. Subjects first design a portfolio, whereby each combination of assets yields the same expected return and variance of returns. (...)

Persistent link: https://www.econbiz.de/10005845214