We study three fundamental components of financial agency settings: Perception and communication of investment profiles, the interaction of agents’ and clients’ preferences, and the role of (non-)monetary incentives. The perception of investment profile terminology is very heterogeneous,...

We document outcome bias in situations where an agent makes risky financial decisions for a principal. In three experiments, we show that the principal’s evaluations and financial rewards for the agent are strongly affected by the random outcome of the risky investment. This happens despite...

The interdependence of technical and financial considerations poses a majorproblem for the development of appropriate decision support systems in businesspractice. In this paper, an application - with strategic importance for outsourcingproviders in information technology - is described...