English
 
User Manual Privacy Policy Disclaimer Contact us
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT
  Delegated Decision Making and Social Competition in the Finance Industry

Kirchler, M., Lindner, F., & Weitzel, U. (2018). Delegated Decision Making and Social Competition in the Finance Industry.

Item is

Basic

show hide
Item Permalink: http://hdl.handle.net/21.11116/0000-0001-D7D0-1 Version Permalink: http://hdl.handle.net/21.11116/0000-0003-88CF-B
Genre: Paper

Files

show Files

Locators

show
hide
Description:
-

Creators

show
hide
 Creators:
Kirchler, Michael, Author
Lindner, Florian1, Author              
Weitzel, Utz, Author
Affiliations:
1Max Planck Institute for Research on Collective Goods, Max Planck Society, ou_2173688              

Content

show
hide
Free keywords: experimental finance, behavioral finance, social competition, rank incentives, financial professionals, delegated decision making, investment game, lab-in-the-field experiment
 JEL: G02 - Behavioral Finance: Underlying Principles
 JEL: G11 - Portfolio Choice; Investment Decisions
 JEL: D03 - Behavioral Microeconomics: Underlying Principles
 JEL: C93 - Field Experiments
 Abstract: Two aspects of social context are central to the finance industry. First, financial professionals usually make investment decisions on behalf of third parties. Second, social competition, in the form of performance rankings, is pervasive. Therefore, we investigate professionals’ risk-taking behavior under social competition when investing for others. We run online and lab-in-the-field experiments with 965 financial professionals and show that professionals increase their risk taking for others when they lag behind. This effect, however, disappears when professionals’ incentives are flat. Additional survey evidence from 1,349 respondents reveals that professionals’ preferences for high rankings are significantly stronger than the general population’s.

Details

show
hide
Language(s):
 Dates: 2018
 Publication Status: Published online
 Pages: -
 Publishing info: Bonn : Max Planck Institute for Research on Collective Goods
 Table of Contents: -
 Rev. Type: -
 Identifiers: Other: 2018/08
 Degree: -

Event

show

Legal Case

show

Project information

show

Source

show