Payoff-Based Decision-Making

Información del proyecto

PBDM

Identificador del acuerdo de subvención: 797396

DOI 10.3030/797396

Proyecto cerrado

Fecha de la firma de la CE 13 Abril 2018

Fecha de inicio 1 Junio 2018

Fecha de finalización 31 Mayo 2020

Financiado con arreglo a

• EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions

Coste total € 177 598,80

Aportación de la UE € 177 598,80

Coordinado por

UNIVERSITEIT MAASTRICHT
Países Bajos

Objetivo

This project investigates the effects of personal payoff experiences on subsequent decisions in repeated settings under uncertainty with feedback. The project will first build a theoretical framework integrating the effects of experienced payoffs on both risk attitudes and beliefs. In the model, payoffs influence risk preferences, relaxing the assumption that preferences are stable; payoffs also distort information processing, causing belief biases. I will model this as an individual investor’s portfolio choice problem, and generate implications for behavior and for asset price dynamics. The theoretical results will be tested experimentally and empirically. I will use one experiment to establish the validity of theoretical predictions in a controlled setting where payoff experiences vary across treatments, with all other things equal. The other experiment complements the first by disentangling the competing preference and belief mechanisms with the help of brain scanning technology. Finally, the external validity will be checked in an empirical study using individual investors’ trading and pension choices data. The data contain survey results of investors’ beliefs towards own investments and the market, providing a natural ground for a test of my theory. Understanding of the payoff-based decision-making mechanism in finance can potentially shed light on other behavioral patterns in financial decision-making, such as herding and style investing. This project will thus generate important policy implications for individual investors to improve their welfare, for financial firms to make profits, and for policy makers to enhance market efficiency.

Ámbito científico (EuroSciVoc)

CORDIS clasifica los proyectos con EuroSciVoc, una taxonomía plurilingüe de ámbitos científicos, mediante un proceso semiautomático basado en técnicas de procesamiento del lenguaje natural. Véase: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.

• ciencias naturales › informática y ciencias de la información › ciencia de datos › tratamiento de datos

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Programa(s)

• H2020-EU.1.3. - EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions Main Programme
• H2020-EU.1.3.2. - Nurturing excellence by means of cross-border and cross-sector mobility

Tema(s)

• MSCA-IF-2017 - Individual Fellowships

Convocatoria de propuestas

H2020-MSCA-IF-2017

Régimen de financiación

MSCA-IF-EF-ST -

Coordinador

UNIVERSITEIT MAASTRICHT

• Aportación neta de la UEn: € 177 598,80
• Dirección: MINDERBROEDERSBERG 4 ; 6200 MD Maastricht ; Países Bajos
• Región: Zuid-Nederland › Limburg (NL) › Zuid-Limburg
• Tipo de actividad: Institutos de educación secundaria o superior
• Coste total: € 177 598,80