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and DRD4) are significant determinants of risk taking in investment decisions. We find that the 5-HTTLPR s/s allele … carriers take 28% less risk than those carrying the s/l or l/l alleles of the gene. DRD4 7-repeat allele carriers take 25% more … risk than individuals without the 7-repeat allele. These findings contribute to the emerging literature on the genetic …
Persistent link: https://www.econbiz.de/10015215671
When investment is repeated, previous outcomes (winning/losing) as well as the current budget level (gain/loss domain) influence decisions. The first is related to the so-called "gamblers fallacy". The second to value function relative to some reference point. Both effects have been extensively...
Persistent link: https://www.econbiz.de/10015217487
particular, we found that optimism and anxiety were a liability in unfavorable markets, leading to unreasonable levels of risk …. Impulsivity was a liability in both favorable and unfavorable markets, leading to high risk on unfavorable markets, and low risk … in favorable markets. Openness to experience was an asset in unfavorable markets, leading to adjusted risk taking …
Persistent link: https://www.econbiz.de/10015218593
in the processing of information about risk, rewards and punishments. These findings imply that emotions may influence … manipulations, or endogenously by outcomes of prior actions -- indeed matters for financial risk taking, and that it does so by … people to take more risk, and to be more confident in their ability to evaluate the available investment options, relative to …
Persistent link: https://www.econbiz.de/10015223926
In this paper influence of behavioral factors (overconfidence and risk aversion) on financial decision making of … economic subjects is analyzed. For this purpose two kinds of experiments were conducted: asset market and risk aversion … risk aversion was implemented in a sample of former participants of the asset market experiment (32 persons). The presented …
Persistent link: https://www.econbiz.de/10015224080
In this paper influence of behavioral factors (overconfidence and risk aversion) on financial decision making of … economic subjects is analyzed. For this purpose two kinds of experiments were conducted: asset market and risk aversion … risk aversion was implemented in a sample of former participants of the asset market experiment (32 persons). The presented …
Persistent link: https://www.econbiz.de/10015226714
Cumulative Prospect Theory (Kahneman, Tversky, 1979, 1992) holds that the value function is described using a power function, and is concave for gains and convex for losses. These postulates are questioned on the basis of recently reported experiments, paradoxes (gain-loss separability...
Persistent link: https://www.econbiz.de/10015227457
prior to financial risk taking. Since anticipation of diverse rewards can increase NAcc activation, even incidental reward … cues may influence financial risk-taking. Using event-related FMRI, we predicted and found that anticipation of viewing … rewarding stimuli (erotic pictures for 15 heterosexual males) increased financial risk taking, and that this effect was …
Persistent link: https://www.econbiz.de/10015256671
Each economic actor is characterized by his own evaluations, traits, and strategies. Although heterogeneity of economic actors is widely acknowledged, little is known about the factors causing it. In this paper, we will examine the behavioral bias known as myopic loss aversion, and the...
Persistent link: https://www.econbiz.de/10015263638
We investigate the influence of overconfidence and risk aversion on individual financial decision making in the … was followed by post hoc risk aversion measurement. Our results revealed that in the suggested setting, performance and … decreased sample differences in individual outcomes were overconfidence and not risk aversion driven. …
Persistent link: https://www.econbiz.de/10015240735