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This paper reports the results of an experiment that brings together psychological measures of competence and … ambiguous lotteries in a financial decision context. The experiment can be viewed in two parts. The first part replicates an … used to explain elicited certainty equivalents in the second part of the experiment. Certainty equivalents were elicited …
Persistent link: https://www.econbiz.de/10001727835
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Risk is one of the key aspects in financial decision-making and therefore an integral part of the behavioral economics and finance literature. Focusing on the conceptualization of the term "risk", which researchers have addressed from numerous angles, this comment aims to offer a critical...
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methodology, we conducted a laboratory experiment that allowed us to isolate behavioral biases and personality traits and measure …
Persistent link: https://www.econbiz.de/10011392293
Making financial decisions under risk and uncertainty has become part of everyday life. Traditional finance explores the objective side of risk, analysing the decisions made by perfectly rational individuals in efficient market conditions. Behavioural finance seeks to connect theory with...
Persistent link: https://www.econbiz.de/10014530307
A pervasive feature in the finance industry is relative performance, which can include extrinsic (money), intrinsic (self-image), and reputational (status) motives. In this paper, we model a portfolio decision with two assets and investigate how reputational motives (i.e., the public...
Persistent link: https://www.econbiz.de/10012001790
A pervasive feature in the finance industry is relative performance, which can include extrinsic (money), intrinsic (self-image), and reputational (status) motives. In this paper, we model a portfolio decision with two assets and investigate how reputational motives (i.e., the public...
Persistent link: https://www.econbiz.de/10012008982