Investors perceive stocks of companies with fluent names as more profitable. This perception may result from two different channels: direct, non-deliberate affect toward fluent names or indirect, deliberate interpretation of fluent names as a signal for company quality. We present a...

Investors perceive stocks of companies with fluent names as more profitable. This perception may result from two different channels: direct, non-deliberate affect toward fluent names or indirect, deliberate interpretation of fluent names as a signal for company quality. We present a...

Between investors and non-investors, we document a substantial gap in the perception of risk. Participants of our online experiment state their expectations of past and future returns, volatility and loss likelihoods. Non-investors overestimate historical loss probabilities more than investors,...

Despite the compelling evidence on gain-loss-domain-dependent behavior, research on domaindependent portfolio diversification is scarce. We recruited 251 experienced US retail investors to participate in a controlled experiment. Their task was to select portfolios that differ in asset...

Investors perceive stocks of companies with fluent names as more profitable. This perception may result from two different channels: a direct, non-deliberate affect toward fluent names or a deliberate interpretation of fluent names as a signal for company quality. We use preregistered...

We investigate the relation between the motive of greed and several asset market indicators such as trading activity and bubble formation in the form of mispricing, overpricing, and price amplitude. To that end, we run experiments in which we are able to measure individuals’ greed and create...

We analyze the attractiveness of investment strategies over a variety of investment horizons from the viewpoint of an investor with preferences described by Cumulative Prospect Theory (CPT), currently the most prominent descriptive theory for decision making under uncertainty. A bootstrap...