Article ID Journal Published Year Pages File Type
10437654 Journal of Economic Behavior & Organization 2014 13 Pages PDF
Abstract
We analyze the prediction of risk preferences of others using an artefactual field experiment with financial professionals and students. For their prediction, the subjects receive information on multiple demographic characteristics and a self-assessment of risk taking of the target. When analyzing the predictions we find three significant effects: subjects use the demographic information for stereotyping as well as the target's self-assessment on risk taking, and we find a considerable false consensus effect. The false consensus effect is the strongest for experienced professionals. Regarding the prediction's accuracy, we find that the forecasts of the professionals are more accurate than the forecasts of the students.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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