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Illusion of Expertise in Portfolio Decisions - An Experimental Approach -

Fellner, Gerlinde; Güth, Werner; Maciejovsky, Boris - Max-Planck-Institut für Ökonomik, Max-Planck-Gesellschaft - 2001

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...

Persistent link: https://www.econbiz.de/10005765210

Behavioral biases and cognitive reflection

Hoppe, Eva Isabel; Kusterer, David J. - Cologne Graduate School in Management, Economics and … - 2010

) are related to their susceptibility to the base rate fallacy, the conservatism bias, overconfidence, and the endowment …

Persistent link: https://www.econbiz.de/10008739724

Illusion of expertise in portfolio decisions : an experimental approach

Fellner, Gerlinde; Güth, Werner; Maciejovsky, Boris - 2001

Overall, 72 subjects invest their endowment in four risky assets. Each com-bination 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...

Persistent link: https://www.econbiz.de/10011408429

Cognitive uncertainty and overconfidence

Amelio, Andrea - 2022

overconfidence. Cognitive uncertainty represents a decision maker's uncertainty about her action optimality. We present a simple … model of overconfidence based on the concept of cognitive uncertainty. The model relates the concepts theoretically and …Overconfidence is one of the most ubiquitous cognitive bias. There is copious evidence of overconfidence being relevant …

Persistent link: https://www.econbiz.de/10013339105

Causes, consequences, and cures of myopic loss aversion -An experimental investigation

Fellner, Gerlinde; Sutter, Matthias - Max-Planck-Institut für Ökonomik <Jena> - Abteilung … - 2005

Myopic loss aversion (MLA) has been established as one prominentexplanation for the equity premium puzzle. In this paper we address two issuesrelated to the effects of MLA on risky investment decisions. First, we assess therelative impact of feedback frequency and investment flexibility (via...

Persistent link: https://www.econbiz.de/10005866865

Granny versus Game Theorst: Ambiguity in Experimental Games

Eichberger, Jürgen; Kelsey, David H.; Schipper, Burkhard C. - 2006

We report on an experiment in which subjects choose actions in strategic games with either strategic complements or substitutes against a granny, a game theorist or other subjects. The games are selected in order to test predictions on the comparative statics of equilibrium with respect to...

Persistent link: https://www.econbiz.de/10010276585

Risk taking in diverse groups: Gender matters

Nieboer, Jeroen - 2013

Using an experiment with incentivized decisions of groups in the economics laboratory, I investigate the effect of group diversity on group risk taking. I measure econometrically the effects of various aspects of subjects' diversity: nationality, language, university degree and gender. I find...

Persistent link: https://www.econbiz.de/10010392433

Benefit losses loom larger than taxes: The effects of framing and loss aversion on behavioural responses to taxes and benefits

Avram, Silvia - 2015

A substantive body of research highlights the existence of framing effects in labour supply responses to taxation challenging traditional models that assume taxes only influence behaviour via the budget constraint. Using a lab experiment, this paper examines the presence of differential...

Persistent link: https://www.econbiz.de/10011419004

Negotiation under the curse of knowledge

Pierrot, Thibaud - 2019

An individual is affected by the curse of knowledge when he fails to appreciate the viewpoint of a lesser-informed agent. In contrast to a rational person, the cursed individual behaves as if part of his private information were common knowledge. This systematic cognitive bias alters many...

Persistent link: https://www.econbiz.de/10012141849

Do reciprocators exploit or resist moral wiggle room? An experimental analysis

Matthey, Astrid; Regner, Tobias - 2015

By now there is substantial experimental evidence that people make use of "moral wiggle room" (Dana et al., 2007), that is, they tend to exploit moral excuses for selfish behavior. However, this evidence is limited to dictator games. In our experiment, a trust game variant, we study whether...

Persistent link: https://www.econbiz.de/10011522057