Investment Heuristics and Wealth

  • Thomas Alexander Stephens (Contributor)
  • Jean-Robert Tyran (Contributor)

Activity: Talk or presentationScience to science


We experimentally investigate heuristics used in investment decisions, and how they relate to real-world wealth. Our subjects are drawn from a large, representative sample of the Danish population, and anonymously matched to official socioeconomic register data. Subjects face a series of tasks in which they may invest in risky assets, but to invest, they must borrow money. By systematically varying the asset returns and borrowing costs, we are able to distinguish between optimisation and biased heuristics. We find that behaviour in the experiment is strongly correlated with net worth, controlling for income, age and other relevant socioeconomic and psychometric characteristics.
Period26 Nov 201427 Nov 2014
Event title9th Nordic Conference on Behavioral and Experimental Economics
Event typeUnkonwn
Degree of RecognitionInternational