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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

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 - 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

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

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

Reciprocity under moral wiggle room: Is it a preference or a constraint?

Regner, Tobias - 2016

We analyze reciprocal behavior when moral wiggle room exists. Dana et al. (2007) show that giving in a dictator game is only partly due to distributional preferences as the giving rate drops when situational excuses for selfish behavior are provided. Our binary trust game closely follows their...

Persistent link: https://www.econbiz.de/10011580465

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

Do i really want to know? A cognitive dissonance-based explanation of other-regarding behavior

Matthey, Astrid; Regner, Tobias - 2010

We investigate to what extent genuine social preferences can explain observed other-regarding behavior. In a dictator game variant subjects can choose whether to learn about the consequences of their choice for the receiver. We find that a majority of subjects showing other-regarding behavior...

Persistent link: https://www.econbiz.de/10010281645

More than outcomes: A cognitive dissonance-based explanation of other-regarding behavior

Matthey, Astrid; Regner, Tobias - 2011

Recent research has cast some doubt on the general validity of outcome-based models of social preferences. We develop a model based on cognitive dissonance that focuses on the importance of self-image. An experiment (a dictator game variant) tests the model. First, we find that subjects whose...

Persistent link: https://www.econbiz.de/10010281679