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This paper reports the results of an experiment that brings together psychological measures of competence and … ambiguous lotteries in a financial decision context. The experiment can be viewed in two parts. The first part replicates an … used to explain elicited certainty equivalents in the second part of the experiment. Certainty equivalents were elicited …
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Making financial decisions under risk and uncertainty has become part of everyday life. Traditional finance explores the objective side of risk, analysing the decisions made by perfectly rational individuals in efficient market conditions. Behavioural finance seeks to connect theory with...
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almost half of our subjects. Among those, roughly 24%are rational expected utility maximizers, 24% make occasional mistakes …
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Building on cross-sectional data for Austrian high school students from fifth to twelfth grade, we investigate the correlations between socio-economic background variables and a comprehensive set of variables related to financial decision-making (i.e., financial knowledge, behavioral...
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