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Adaptive social learning
March, Christoph - 2016
The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly … interact in social-learning settings with distinct information structures. In each round of interaction, they use their … behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each …
Persistent link: https://www.econbiz.de/10011434567
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Macroeconomic experiences and risk taking of euro area households
Ampudia, Miguel; Ehrmann, Michael - 2014
This paper studies to what extent the experiences of households shape their willingness to take financial risks. It follows the methodology of Malmendier and Nagel (2011) and applies it to a novel data set on household finances covering euro area households. We show that experienced stock market...
Persistent link: https://www.econbiz.de/10011605697
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A Model of Non-Belief in the Law of Large Numbers
Benjamin, Daniel J. - 2012
People believe that, even in very large samples, proportions of binary signals might depart significantly from the population mean. We model this "non-belief in the Law of Large Numbers" by assuming that a person believes that proportions in any given sample might be determined by a rate di...
Persistent link: https://www.econbiz.de/10013113839
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Controlling for the Compromise Effect Debiases Estimates of Risk Preference Parameters
Beauchamp, Jonathan - 2020
The compromise effect arises when options near the "middle" of a choice set are more appealing. The compromise effect poses conceptual and practical problems for economic research: by influencing choices, it distorts revealed preferences, biasing researchers' inferences about deep (i.e., domain...
Persistent link: https://www.econbiz.de/10012855850
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Controlling for Compromise Effects Debiases Estimates of Preference Parameters
Beauchamp, Jonathan; Benjamin, Daniel J.; Chabris, … - 2016
The compromise effect - a tendency to choose options close to the “middle” of a choice - has been shown to confound measurement of preferences. In an experiment with 550 participants, we study risk preferences elicited with Multiple Price Lists. Following prior work, we manipulate the...
Persistent link: https://www.econbiz.de/10014130438
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Controlling for the Compromise Effect Debiases Estimates of Risk Preference Parameters
Beauchamp, Jonathan; Benjamin, Daniel J.; Chabris, … - 2016
The compromise effect arises when options near the "middle" of a choice set are more appealing. The compromise effect poses conceptual and practical problems for economic research: by influencing choices, it distorts revealed preferences, biasing researchers' inferences about deep (i.e., domain...
Persistent link: https://www.econbiz.de/10014124499
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A model of reference-dependent belief updating
Maier, Johannes K.; König, Clemens - 2016
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011557745
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Do Individual Investors Learn from Their Mistakes?
Koestner, Maximilian - 2019
closely related to learning from investment mistakes. To test our hypotheses, we use an administrative dataset which covers … that this effect is related to learning from overtrading …
Persistent link: https://www.econbiz.de/10012905576
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Recognition-Based and Familiarity-Based PortfolioStrategies – An Experimental Study
Diao, Linan - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2011
Empirical evidences show that investors tend to be biased toward investing indomestic (home bias) and local (local bias) stocks. Familiarity is considered to be one of thereasons. A similar concept was proposed by Goldstein and Gigerenzer (1999, 2002), known asthe recognition heuristic: “when...
Persistent link: https://www.econbiz.de/10009248893
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Money Illusion and Household Finance
Stephens, Thomas Alexander - 2016
We elicit money illusion and match it with financial and sociodemographic data from official registers on a quasi-representative sample of the Danish population. We find that people who are more prone to money illusion hold more of their gross wealth in nominal assets, including bank deposits...
Persistent link: https://www.econbiz.de/10012978288