| 1. |
- Andersson, Maria, 1977, et al.
(författare)
-
A Social-Psychological Perspective on Herding in Stock Markets
- 2014
-
Ingår i: The Journal of Behavioral Finance. - : Informa UK Limited. - 1542-7560 .- 1542-7579. ; 15:3, s. 226-234
-
Tidskriftsartikel (refereegranskat)abstract
- A social-psychological perspective conceives of herding in stock markets as informative social influence resulting from heuristic or systematic information processing. In three laboratory experiments employing undergraduates we apply this perspective to investigate factors that prevent herd influence that would lead to inaccurate predictions of stock prices. In Experiment 1 we show that an economic reward for making the same predictions as the herd increases the influence of a majority but not the influence of a minority, and that an individual economic reward for making accurate predictions reduces the influence of the majority. In Experiment 2 we show a reduced influence of a majority herd’s inaccurate predictions when requiring assessments of the accuracy of the majority herd´s predictions as compared to requiring judgments of their consistency. Experiment 3 shows that a lower volatility of stock prices reduces the influence of a majority herd´s inaccurate predictions
|
|
| 2. |
- Andersson, Maria, 1977, et al.
(författare)
-
Effects of consistency and accurate predictions of stock prices on herding in a simulated financial market.
- 2008
-
Ingår i: Poster presented at the 29th annual conference of the Society for Judgment and Decision Making, Chicago, USA..
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)abstract
- In a simulated financial market setting we investigate the degree to which participants in judgment tasks were influenced by other (fictitious) participants’ judgments. Two experiments examine the influence from random vs. accurate majorities (Experiment 1), random vs. accurate minorities (Experiment 2), and whether the influence was affected by instructing participants to focus on the accuracy in performance (Experiments 1 and 2). Results show that participants followed majorities irrespectively of their level of accuracy, whereas accurate minorities were more influential than random minorities. The focus instruction decreased majority influence, regardless of accuracy, but increased the influence from accurate minorities.
|
|
| 3. |
|
|
| 4. |
- Andersson, Maria, 1977, et al.
(författare)
-
Effects of financial incentives on herding in simulated financial markets
- 2008
-
Ingår i: Paper presented at the International Association for Research in Economic Psychology (IAREP), Rome, Italy..
-
Konferensbidrag (refereegranskat)abstract
- Herding in financial markets refers to that investors influence each other when making investment decisions. In these experimental studies, herding leads to worse performance relative to relying on private information. Previous studies of herding have shown that majorities in general are more influential than minorities. The aim of this research was to investigate whether financial incentives impact herding with majorities and minorities under these conditions. In two experimental simulations of a financial market, participants predicted an “upmarket” or “downmarket” conditional on diagnostic information presented on each trial. In Experiment 1, participants in an individual condition only received private information, while participants in a group condition, in addition, received information about randomly generated predictions ostensibly made by three others. Economic incentives for accurate predictions were based on individual performance, and were hypothesized to counteract reliance on invalid information about the herd’s choices. As expected, performance was worse in the group condition than in the individual condition, implying that participants were influenced by the herd. In Experiment 2, the effects of financial incentives for making predictions similar to either the majority or the minority of the others were examined. We hypothesized that financially rewarding group performance may reinforce non-systematic processing, and hence enhance majority influence. Since minority influence is associated with systematic processing, we hypothesized that systematic processing in minority conditions may increase the influence of the private information, and thus improve performance. The results showed that participants followed the majority but not the minority. One explanation for the asymmetry in the effects of rewarding herding with a majority and a minority may be the notion that the tendency to conform overrides systematic processing in majority influence, whereas the reverse would be true in minority influence.
|
|
| 5. |
- Andersson, Maria, 1977, et al.
(författare)
-
Effects of stock investments of information about short versus long price series
- 2012
-
Ingår i: Review of behavioral finance. - : Emerald. - 1940-5979. ; 4:2, s. 81-97
-
Tidskriftsartikel (refereegranskat)abstract
- Purpose – The purpose of this paper is to investigate whether stock price predictions and investment decisions improve by exposure to increasing price series. Design/methodology/approach – The authors conducted three laboratory experiments in which undergraduates were asked to role-play being investors buying and selling stock shares. Their task was to predict an unknown closing price from an opening price and to choose the number of stocks to purchase to the opening price (risk aversion) or the closing price (risk taking). In Experiment 1 stock prices differed in volatility for increasing, decreasing or no price trend. Prices were in different conditions provided numerically for 15 trading days, for the last 10 trading days, or for the last five trading days. In Experiment 2 the price series were also visually displayed as scatter plots. In Experiment 3 the stock prices were presented for the preceding 15 days, only for each third day (five days) of the preceding 15 days, or as five prices, each aggregated for three consecutive days of the preceding 15 days. Only numerical price information was provided. Findings – The results of Experiments 1 and 2 showed that predictions were not markedly worse for shorter than longer price series. Possibly because longer price series increase information processing load, visual information had some influence to reduce prediction errors for the longer price series. The results of Experiment 3 showed that accuracy of predictions increased for less price volatility due to aggregation, whereas again there was no difference between five and 15 trading days. Purchase decisions resulted in better outcomes for the aggregated prices. Research limitations/implications – Investors´ performance in stock markets may not improve by increasing the length of evaluation intervals unless the quality of the information is also increased. The results need to be verified in actual stock markets. Practical implications – The results have bearings on the design of bonus systems. Originality/value – The paper shows how stock price predictions and buying and selling decisions depend on amount and quality of information about historical prices.
|
|
| 6. |
- Andersson, Maria, 1977, et al.
(författare)
-
Experimental Studies of Majority Influences in Financial Markets.
- 2008
-
Ingår i: Paper presented at the 6th Nordic conference on group and social psychology (GRASP), Lund University, Sweden.
-
Konferensbidrag (refereegranskat)abstract
- Herding in financial markets refers to that investors imitate others when making investment decisions. The aim of this research is to investigate factors that would break influences of a majority of others. In one experiment we investigate the impact of the size of a herd (majority vs. minority), accuracy of the herds’ predictions, and attentional focus. Undergraduates serving as participants are asked to predict fictitious stock prices in 50 trials, conditional on information about the current price and predictions made by five fictitious other participants. The prices and the others’ predictions are generated by random sampling. A majority of the others’ predictions is correlated (rs .95), and the predictions made by the majority are either random (uncorrelated with the price, r <.20) or accurate (correlated with the price, range of rs equal to .65 - .85). Participants are instructed to focus their attention on either accuracy or consistency of the others’ predictions. The results showed that a focus on accuracy reduced majority influence, whereas a focus on consistency had no effect. This was true both in the conditions with accurate and inaccurate majorities. An ongoing additional experiment investigates whether an accurate minority has an influence when its predictions have higher predictive validity than the price. The level of accuracy in the predictions made by the minority is either random (uncorrelated with the price, r <.20) or accurate (correlated with the price, rs .95).
|
|
| 7. |
- Andersson, Maria, 1977, et al.
(författare)
-
Hållbara bonussystem : Sustainable bonus systems
- 2011
-
Ingår i: Hållbar utveckling - från risk till värde / L. G. Hassel, L.-O. Larsson & E. Nore (red.). - Malmö : Studentlitteratur. - 9789144075327 ; , s. 41-49
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)
|
|
| 8. |
- Andersson, Maria, 1977, et al.
(författare)
-
Social influence on predictions of simulated stock prices
- 2009
-
Ingår i: Journal of Behavioral Decision Making. ; 22, s. 271-279
-
Tidskriftsartikel (refereegranskat)abstract
- Herding in financial markets refers to that investors are influenced by others. This study addresses the importance of consistency for herding. It is suggested that, in financial markets perceptions of consistency are based on repeated observations over time. Consistency may then be perceived as the agreement across time between investors’ predictions. In addition, consistency may be related to variance over time in each investor’s predictions. In an experiment using a Multiple Cue Probability Learning paradigm, 96 undergraduates made multi-trial predictions of future stock prices given information about the current price and the predictions made by five fictitious others. Consistency was varied between the others' predictions (correlation) and within the others’ predictions (variance). The results showed that the predictions were significantly influenced by the others’ predictions when these were correlated. No effect of variance was observed. Hence, participants were influenced by the others when they were in agreement, regardless of whether they varied their predictions over trials or not.
|
|
| 9. |
- Andersson, Maria, 1977, et al.
(författare)
-
The effect of accuracy and focus on herding in financial predictions.
- 2008
-
Ingår i: Paper presented at the 10th meeting of the European Social Cognition Network (ESCON), Volterra, Italy..
-
Konferensbidrag (refereegranskat)abstract
- Herding in financial markets refers to that investors influence each other when making investment decisions. Previous studies of herding have shown that a majority is more influential than a minority. This result is in line with theories of social influence, arguing that majorities in general are more influential but consistent minorities may also exert influence. The aim of this research is to investigate what factors may impact the level of influence from minorities and majorities in financial markets, focusing on accuracy and focal attention. Experiment 1 investigates the impact of the size of the herd (majority vs. minority) and the accuracy in its predictions. Participants’ task was to predict fictitious stock prices in 50 trials, conditional on information about the current price and predictions made by five fictitious other participants. Either four (majority) or two (minority) of the others’ predictions were correlated (rs > .95), and they made either random (uncorrelated with the price trend, rs < .20) or non-random predictions (correlated with the price trend, range of rs equal to .65 to .85). The results showed that the majority exerted more influence than did the minority, more when the majority made non-random than random predictions. The correlation and accuracy of predictions thus increased the majority influence, but not the minority influence. The aim of Experiment 2 was to investigate whether the majority influence would decrease if participants were instructed to focus on the others’ performance. Conditions in which the majority made random or non-random predictions were included. After a number of trials participants were requested to state either which of the others that made accurate predictions or which of the others that made predictions that were correlated. The results showed that focus on accuracy reduced majority influence.
|
|
| 10. |
- Gärling, Tommy, 1941, et al.
(författare)
-
An experimental study of influences of performance-related payments on timing of delegated stock purchases
- 2017
-
Ingår i: Journal of Behavioral Finance. - : Informa UK Limited. - 1542-7560 .- 1542-7579. ; 18:1, s. 78-85
-
Tidskriftsartikel (refereegranskat)abstract
- Performance-related bonuses are important tools for investment organizations to incentivize stock traders. Yet, two experiments indicate that bonuses rewarding short-term performance may lead to worse timing of purchases. We propose that hyperbolic time discounting make participants set lower aspired purchase prices for short-term (decreasing percentage) bonuses than long-term (increasing percentage) bonuses. For this reason purchases are made earlier for decreasing than increasing percentage bonuses, earlier for decreasing than random prices, and earlier for high than low price volatility. Neither purchases at lowest price or highest bonus are attained. Hyperbolic time discounting may account for bubbles observed in experimental double-auction markets.
|
|
| 11. |
- Gärling, Tommy, 1941, et al.
(författare)
-
Covariation neglect among novice investors.
- 2006
-
Ingår i: In T. Tyszka (Convener), Behavioral finance. Symposium conducted at the 26th International Congress of Applied Psychology (ICAP) (Athens, Greece)..
-
Konferensbidrag (refereegranskat)abstract
- Behavioral studies of portfolio diversification typically examine how people divide invest-ments between risky and riskless assets. Effective diversification also requires that the returns of the risky assets in portfolios do not co-vary excessively. In 3 experiments undergraduates made hypothetical investment choices. In Experiment 1 participants paid more attention to the volatility of individual stock funds than to the volatility of the aggregated portfolio. In Ex-periment 2 most participants diversified even when the risk increased due to co-variation be-tween individual fund returns. Experiment 3 identified three reasons for co-variation neglect: (1) Not intending to minimize risk; (2) Failing to understand the effect of co-variation; and (3) Failing to assess volatility of portfolios.
|
|
| 12. |
|
|
| 13. |
- Gärling, Tommy, 1941, et al.
(författare)
-
Identifying heuristic choice rules in the Swedish premium pension scheme
- 2004
-
Ingår i: Paper presented in the workshop Research on the new premium pension system, Stockholm Institute for Financial Research, Stockholm School of Economics, Stockholm..
-
Konferensbidrag (refereegranskat)abstract
- The paper presents the results of analyses of citizens actual choices in the Swedish premium pension scheme (PPS) (Hedesström et al., 2004) and as revealed in an Internet-based survey of fictitious choices among fund categories. Findings indicated the prevalence of a default bias, the use of a diversification heuristic, a home bias, and the use of a 1/n heuristic. In the survey it was also shown that involvement in the PPS, measured by self-rating scales, increased with the amount to invest but decreased with age (proximity to retirement). Involvement furthermore decreased the likelihood of choosing the default fund and was positively correlated with the number of chosen funds. Naïve risk diversification, the home bias, and the 1/n heuristic were however unaffected by involvement
|
|
| 14. |
|
|
| 15. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Behavioral spillover effects of default choice
- 2016
-
Ingår i: Proceeding of 31st International Congress of Psychology, Yokohama, Japan.
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)abstract
- Research demonstrates that ”nudging” significantly affects choice. A caveat is that such studies generally do not account for spillover effects. Moral licensing theory predicts that having made a prosocial choice sometimes makes decision makers feel “licensed” to subsequently choose proself options. We present experiments where each participant makes 2 choices. In Choice1 they keep/donate a bonus to a children’s cancer charity; in Choice2 they keep/donate a possible lottery prize to the same charity. Both parents and non-parents were more (less) likely to donate in Choice1 when “donate” (“keep”) was default. Among Choice1 donors, nudged non-parents donated less in Choice2 (which had no default option) than non-nudged. Conversely, nudged parents tended to donate more in Choice2 compared to non-nudged. In a follow-up replication, self-reported guilt/pride indicated moral licensing only among non-parents. Nudging may produce different spillover effects depending on the degree to which the choice reflects one’s self-identity.
|
|
| 16. |
- Hedesström, Martin, 1969
(författare)
-
Behaviour in financial markets
- 2017
-
Ingår i: Economic psychology / Rob Ranyard (red.). - 9781118926345 ; , s. 239-254
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- Kapitlet utgör en reflekterande översikt av psykologisk forskning om beteende på finansiella marknader, med särskilt fokus på aktiemarknaden
|
|
| 17. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Covariation neglect among novice investors
- 2006
-
Ingår i: Journal of Experimental Psychology: Applied. ; 12:3, s. 155-165
-
Tidskriftsartikel (refereegranskat)abstract
- In 4 experiments, undergraduates made hypothetical investment choices. In Experiment 1, participants paid more attention to the volatility of individual assets than to the volatility of aggregated portfolios. The results of Experiment 2 showed that most participants diversified even when this increased risk because of covariation between the returns of individual assets. In Experiment 3, nearly half of those who seemingly attempted to minimize risk diversified even when this increased risk. These results indicate that novice investors neglect covariation when diversifying across investment alternatives. Experiment 4 established that naïve diversification follows from motivation to minimize risk and showed that covariation neglect was not significantly reduced by informing participants about how covariation affects portfolio risk but was reduced by making participants systematically calculate aggregate returns for diversified portfolios. In order to counteract naïve diversification, novice investors need to be better informed about the rationale underlying recommendations to diversify.
|
|
| 18. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Determinants of heuristic choices in the Swedish premium pension scheme: An internet-based survey
- 2004
-
Ingår i: Poster presented at the 28th international congress of psychology, Beijing, China.
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)abstract
- The results of previous analyses of citizens actual choices in the Swedish premium pension scheme (Hedesström et al., 2004) were replicated in an Internet-based survey of fictitious choices among fund categories. The sample consisted of 392 university employees who were contacted via email. Findings indicated the prevalence of a default bias, use of a diversification heuristic, a home bias, and use of the 1/n heuristic. Involvement in the scheme, measured by self-rating scales, increased with the amount to invest but decreased with age (proximity to retirement). Involvement furthermore decreased the likelihood of choosing the default fund and was positively correlated with the number of chosen funds. Naïve risk diversification, the home bias, and use of the 1/n heuristic were however unaffected by involvement
|
|
| 19. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Determinants of the use of heuristic choice rules in the Swedish premium pension scheme: An internet-based survey
- 2007
-
Ingår i: Journal of Economic Psychology. ; 28, s. 113-126
-
Tidskriftsartikel (refereegranskat)abstract
- The results of previous analyses of citizens’ actual choices of mutual funds in the Swedish compulsory public pension system were replicated in an Internet-based survey of fictitious choices among fund categories. The sample consisted of 392 university employees. Findings indicated a possible default bias, the use of a diversification heuristic, a home bias, and the use of a 1/n heuristic. Involvement in the fund choice, measured by self-rating scales, increased with the amount to invest but decreased with age. Involvement decreased the likelihood of choosing the default fund and was positively correlated with the number of funds included in a portfolio. Home bias and the use of a 1/n heuristic was however unaffected by involvement and by having previous stock market investment experience. Efforts to better inform investors about how to diversify are warranted.
|
|
| 20. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Determinants of use of heuristic choice rules in the Swedish premium pension scheme: An internet-based survey
- 2005
-
Ingår i: Paper presented at the European Association of Consumer Research Conference, Göteborg University, Sweden.
-
Konferensbidrag (refereegranskat)abstract
- The results of previous analyses of citizens actual choices in the Swedish pre-mium pension scheme (Hedesström et al., 2004) were replicated in an Internet-based survey of fictitious choices among fund categories. The sample consisted of 392 university employees who were contacted via email. Findings indicated the prevalence of a default bias, the use of a diversification heuristic, a home bias, and the use of a 1/n heuristic. Involvement in the PPS, measured by self-rating scales, increased with the amount to invest but decreased with age. Involvement furthermore decreased the likelihood of choosing the default fund and was posi-tively correlated with the number of chosen funds. Home bias and use of a 1/n heuristic were however unaffected by involvement
|
|
| 21. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Effects of bonuses on diversification in delegated stock portfolio management
- 2015
-
Ingår i: Journal of Behavioral and Experimental Finance. - : Elsevier BV. - 2214-6350. ; 7:September, s. 60-70
-
Tidskriftsartikel (refereegranskat)abstract
- Our aim is to investigate whether bonuses make stock portfolio managers take higher risks by diversifying less. In two experiments with undergraduates role-playing being professional investors, we test a model implying that they initially anchor on 100% allocation to one of two options delivering the largest bonus payout, then adjust towards allocating equally much to each option (maximal diversification) depending on the degree of perceived uncertainty of the bonus outcome. In Experiment 1 we find as expected that when the bonus is reduced, investment in the preferred option decreases such that diversification increases. Diversification is larger when uncertainty of the bonus outcome is made salient. In Experiment 2weshow that a majority herd strengthens the effect of a bonus for investing in a preferred option despite salient uncertainty of the bonus outcome. In actual stock markets such herding effects would result from investors being similarly rewarded by bonuses.
|
|
| 22. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Effects of partitioning on tradeoff effort and choice
- 2014
-
Ingår i: Proceedings of the 34th Annual Conference of the Society for Judgment and Decision Making.
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)abstract
- In 2 experiments participants donated more of their show-up fee to the World Wildlife Fund if the donation choice was partitioned into 6 sub-choices. Only when choice was partitioned correlated donation size negatively with self-reported effort of making the choice. This is consistent with the notion that completing each sub-choice is rewarding, why a partitioned option provides a larger number of rewards and thus makes trading off an egoistic goal in favor of an altruistic goal less effortful, than does a non-partitioned option. The results indicate that partitioning an environmentally friendly option may make consumers more likely to choose it.
|
|
| 23. |
|
|
| 24. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Identifying heuristic choice rules in the Swedish premium pension scheme
- 2004
-
Ingår i: Journal of Behavioral Finance. ; :5, s. 32-42
-
Tidskriftsartikel (refereegranskat)abstract
- We analyze choices of a randomly selected sample of 10,999 citizens in the Swedish premium pension scheme. The aim is to identify the presence of various heuristic choice rules commonly observed in human decision making. Evidence suggests the prevalence of a default bias, the use of a diversification heuristic, extremeness aversion, a home bias, and the use of a 1/n heuristic. In some cases, cognitive simplification or wishful thinking may underlie the use of these heuristics. In other cases, their use seems to be consistent with recommendations provided by the responsible authority.
|
|
| 25. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Investigating consistency of judgement across sustainability analysts
- 2011
-
Ingår i: Sustainable Development. - : Wiley. - 1099-1719 .- 0968-0802. ; 19:2, s. 119-134
-
Tidskriftsartikel (refereegranskat)abstract
- We compare seven major European and North American sustainability analyst organizations on how they rank-order the same set of companies with regards to environmental performance. We also compare the analyst organizations’ environmental rating schemes with regards to which evaluation criteria they include. Two industries are investigated: automobile and paper/forestry. Although there is fairly broad consensus on which automobile companies have the worst environmental performance, there is considerable disagreement about best-performers. The pattern is less clear for paper/forestry companies. With some notable exceptions, and for both industries, all rating schemes contain evaluation criteria targeting those aspects of company performance associated, according to life-cycle assessments, with the largest potential environmental impact. There are, however, significant divergences as to how many, and which, criteria of medium to low relevance are applied. Sustainability analyst organizations should make explicit to investors and evaluated companies on which theoretical and empirical grounds environmental evaluation criteria are selected.
|
|
| 26. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Investigating consistency of judgement among SRI analyst organisations.
- 2007
-
Ingår i: Paper presented at the 32nd IAREP Conference, Ljubljana, Slovenia..
-
Konferensbidrag (refereegranskat)abstract
- We investigate the degree of consistency among major SRI analyst agencies in Europe and North America with regards to what criteria they take into account when rating companies. Lists of criteria, as well as actual company ratings, are obtained by contacting the SRI analyst agencies. We focus on environmental criteria, and limit the investigation to two specific industries: car manufacturing and forestry/paper. The reliability and validity of SRI ratings is frequently questioned. One objection relates to the apparent lack of theory behind the selection of criteria on which the ratings are based. However, empirical evidence for these claims is notably lacking in the literature. In order to assess the validity of the environmental assessment instruments, we aim to scrutinise how the lists of environmental criteria hold up against various theoretical frameworks. In order to assess the reliability of the instruments, we also aim to test to what degree the various SRI analyst organisations differ as to how they rank-order companies within the two industries.
|
|
| 27. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Naïve diversification in investment decisions
- 2005
-
Ingår i: Paper presented at the 20th research conference on subjective probability, utility and decision making (SPUDM20), Stockholm, Sweden.
-
Konferensbidrag (refereegranskat)abstract
- Behavioural studies of portfolio diversification typically deal with how people di-vide investments between risky and riskless assets. However, effective diversifi-cation also requires that the returns of the risky assets included in a portfolio do not covary excessively. In two experiments undergraduates made hypothetical investment choices. In Experiment 1 participants paid more attention to the vola-tility of the individual assets than to the volatility of the aggregated portfolio. In Experiment 2 most participants diversified even when this in fact increased risk due to covariation between the returns of the individual assets. The results sug-gest that novice investors neglect covariation when diversifying across invest-ment alternatives.
|
|
| 28. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Naïve diversification in the Swedish premium pension scheme: Experimental evidence
- 2009
-
Ingår i: Applied Psychology: An International Review. ; 58:3, s. 403-417
-
Tidskriftsartikel (refereegranskat)abstract
- In the Swedish Premium Pension Scheme (PPS) all citizens in paid employment allocate part of their public pension savings to mutual funds. In so doing they tend to distribute their choices maximally across different stock fund categories. It is hypothesised that this reflects the naïve application of a variety-inducing diversification heuristic. The results of two experiments simulating choices of fund categories in the PPS support this hypothesis by showing that participating undergraduates chose stock funds investing in overlapping and non-overlapping markets or industries in a way demonstrating failure to take into account covariation among fund returns. Administrators of the PPS and similar defined-contribution pension plans should provide participants with comprehensive advice on how to diversify their investment.
|
|
| 29. |
|
|
| 30. |
- Hedesström, Martin, 1969
(författare)
-
Psykologi och aktiemarknaden : Psychology and the stock market
- 2012
-
Ingår i: Samhällspsykologi / Anders Biel & Tommy Gärling (red.). - Malmö : Liber. - 9789147097937 ; , s. 217-234
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- Kapitlet utgör en reflekterande översikt av psykologisk forskning om aktiemarknadens psykologi
|
|
| 31. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Stock investors' preference for short-term vs. long-term bonuses
- 2012
-
Ingår i: Journal of Socio-Economics. - : Elsevier BV. - 1053-5357. ; 41:2, s. 137-142
-
Tidskriftsartikel (refereegranskat)abstract
- Bonuses in the finance sector may be based on too short time intervals for environmental and social factors to be taken into account in investment decisions. We report two experiments to investigate whether investors prefer short-term to long-term bonuses. In Experiment 1 employing 27 undergraduates, preferences were measured for four short-term certain bonuses, evenly distributed across a time interval, and one certain long-term bonus at the end of the time interval. A majority chose the short-term bonuses, and in order for the long-term bonus to be equally preferred it had to be about 40% higher than the four added short-term bonuses. Experiment 2 employing another 36 undergraduates introduced outcome uncertainty that more accurately reflects the choices stock investors face. The participants again choose between a long-term bonus and four distributed short-term bonuses. It was shown that uncertainty made more participants prefer the long-term bonus to the added short-term bonuses than when the outcome was certain. A smaller increase of the long-term bonus of about 20% was now required to make it equally attractive as the four added short-term bonuses. © 2011 Elsevier Inc.
|
|
| 32. |
- Hedesström, Martin, 1969, et al.
(författare)
-
Stock investors' preferences for short-term versus long-term bonuses
- 2011
-
Ingår i: Journal of Socio-Economics. ; 41, s. 137-142
-
Tidskriftsartikel (refereegranskat)abstract
- Bonuses in the finance sector may be based on too short time intervals for environmental and social factors to be taken into account in investment decisions. We report two experiments to investigate whether investors prefer short-term to long-term bonuses. In Experiment 1 employing 27 undergraduates, preferences were measured for four short-term certain bonuses, evenly distributed across a time interval, and one certain long-term bonus at the end of the time interval. A majority chose the short-term bonuses, and in order for the long-term bonus to be equally preferred it had to be about 40% higher than the four added short-term bonuses. Experiment 2 employing another 36 undergraduates introduced outcome uncertainty that more accurately reflects the choices stock investors face. The participants again choose between a long-term bonus and four distributed short-term bonuses. It was shown that uncertainty made more participants prefer the long-term bonus to the added short-term bonuses than when the outcome was certain. A smaller increase of the long-term bonus of about 20% was now required to make it equally attractive as the four added short-term bonuses.
|
|
| 33. |
- Hedesström, Martin, 1969
(författare)
-
The psychology of diversification: Novice investors´ability to spread risks
- 2006
-
Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- In order to reduce risk, portfolio theory prescribes holding a stock portfolio that is diversified across industries and countries. This thesis investigates novice investors’ ability to compile well-diversified portfolios and to what extent psychological factors may affect diversification. In Study I a sample of 10,999 randomly selected citizens’ choices of mutual funds in the Swedish public premium pension scheme (PPS) was analysed. Among those who did not choose the default fund it was typical to include as many funds as were allowed (five) in a portfolio and to use a 1/n heuristic, allocating investments evenly across the selected funds. While thus superficially well-diversified, portfolios were often home biased (overrepresentation of Swedish funds) and possibly influenced by extremeness aversion (overrepresentation of medium-risk funds). Study II replicated these findings in an Internet-survey where 392 university employees made a fictitious choice of PPS funds. Highly involved individuals included a larger number of funds in their portfolio but were not less home biased. Suggesting that investment experience does not improve diversification, individuals who own stock (outside the PPS) were not less home biased. In Study III undergraduates made hypothetical investments, choosing between stock funds that were stripped of all characteristics except for their past (Experiment 1) or expected (Experiments 1 and 2) returns. In Experiment 1 (N = 40) participants paid more attention to the volatility of individual funds than to the volatility of aggregated portfolios. In Experiment 2 (N = 46) a majority diversified even when this increased risk due to covariation between individual funds’ returns. In Experiment 3 (N = 48) nearly half of those who seemingly attempted to minimize risk diversified even when this increased risk. These results suggest that novice investors neglect covariation when diversifying across investment alternatives. Study IV replicated and modified Experiment 2 in Study III. Undergraduates (N = 160) were randomly assigned to one of five conditions with varying instructions. Being instructed to minimize risk, many diversified even when this increased risk. Choices were not markedly improved by informing participants of how covariation affects portfolio risk. Only when being instructed to systematically calculate the returns of diversified portfolios, was covariation neglect reduced. In sum, the results of Studies I-IV suggest that novice investors have an insufficient understanding of what portfolio diversification is essentially about: combining assets which returns are not likely to covary. The results hint at a deep-rooted inability to grasp the concept of covariation, possibly hampering acquisition of adequate knowledge. It is hypothesized that naïve heuristic diversification may be a residual of a default cognitive strategy to seek variety for the sake of learning about the environment.
|
|
| 34. |
- Hedesström, Martin, 1969, et al.
(författare)
-
What’s the net benefit of a nudge? Exploring behavioral spillover from choosing a default
- 2016
-
Ingår i: Proceedings of the 37th Annual Conference of the Society for Judgment and Decision Making. November 18 – 21. Boston..
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)abstract
- Experimental participants made two sequential choices. At Choice 1, a prosocial or a proself option was default. Choice 2 also stood between a prosocial and a proself option but neither was default. The prosocial default increased prosocial Choice 1 but decreased prosocial Choice 2. Selecting the prosocial option in Choice 1 elicited less pride, and rejecting it elicited more guilt, if it was default. Likelihood of making a prosocial Choice 2 increased with pride only amongst participants subjected to the proself default. The net effect of nudges may be diminished due to decision makers' taking less ownership of their choice.
|
|
| 35. |
- Hedesström, Ted Martin, 1969, et al.
(författare)
-
Framtidsanalyser av miljöprestanda
- 2011
-
Ingår i: Hållbar utveckling - från risk till värde / L. G. Hassel, L.-O. Larsson & E. Nore (red.). - 9789144075327 ; , s. 65-72
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)
|
|
| 36. |
- Holmberg, Ulrika, 1966, et al.
(författare)
-
Konsumtionsrapporten - konsumtionen 2005
- 2007
-
Rapport (övrigt vetenskapligt/konstnärligt)abstract
- I Konsumtionsrapporten - konsumtionen 2005 sammanfattas och analyseras hushållens privata konsumtion i Sverige. Rapporten inleds med en översik av offentlig statstik om hushållens utgifter, prisutvecklingen, disponibla inkomster, inköpsplaner och välbefinnande. Därefter analyseras 4 områden djupare av forskare knutna till CFK, dessa är: konsumtionsaktiviteter, konsumtionen före och efter millenieskiftet, IT- och mediakonsumtion och hållbar konsumtion. Sist i rapporten finns bilagor med detaljerad statistik.
|
|
| 37. |
- Michaelsen, Patrik, 1989, et al.
(författare)
-
Downstream consequences of disclosing defaults: influences on perceptions of choice architects and subsequent behavior
- 2021
-
Ingår i: Comprehensive Results in Social Psychology. - : Informa UK Limited. - 2374-3611 .- 2374-3603. ; 5:1-3
-
Tidskriftsartikel (refereegranskat)abstract
- Transparency is a key factor in determining the permissibility of behavior change interventions. Nudges are at times considered manipulative from failing this condition. Ethicists suggest that making nudges transparent by disclosing them to decision makers is a way to mitigate the manipulation objection, but questions remain as to what downstream consequences disclosing decision makers of a nudge may cause. In this registered report, we investigated two such consequences: (1) whether disclosure affects perceptions of the choice architect and (2) whether disclosure influences subsequent behavior. To these ends, we present data from three pilot studies and two main experiments (total N =2177). In both experiments, we used defaults to nudge participants towards prosocial behaviors with real consequences. Experiment 1 employed a mixed design examining changes in perceptions of the choice architect for participants presented with a nudge disclosure before or after choosing. Experiment 2 extended by investigating the effects of disclosure on the default effect, perceptions of the choice architect, and on a subsequent prosocial choice task. Results showed that (1) when presented before choosing the nudge disclosure did not influence perceptions of the choice architect. However, when presented after, perceptions deteriorated. (2) The disclosure, regardless of when presented, had no effect on participants’ behavior in a subsequent non-nudged choice. Additionally, the disclosure did not affect the nudge’s influence on the initial choice. We conclude that lack of transparency can hurt choice architects’ reputation and discuss under what circumstances this may materialize behaviorally. Materials, data, and code are available at osf.io/463af/.
|
|
| 38. |
|
|
| 39. |
|
|
| 40. |
- Michaelsen, Patrik, 1989, et al.
(författare)
-
Experiencing default nudges: autonomy, manipulation, and choice-satisfaction as judged by people themselves
- 2024
-
Ingår i: Behavioural Public Policy. - : Cambridge University Press (CUP). - 2398-063X .- 2398-0648. ; 8:1, s. 85-106
-
Tidskriftsartikel (refereegranskat)abstract
- Criticisms of nudging suggest that nudges infringe on decision makers’ autonomy. Yet, little empirical research has explored whether people who are subjected to nudges agree. In three between-group experiments (N = 2083), we subject participants to contrasting choice architectures and measure experiences of autonomy, choice-satisfaction, perceived threat to freedom of choice, and objection to the choice architecture. Participants who received a prosocial opt-out default nudge made more prosocial choices but did not report lower autonomy or choice satisfaction than participants in opt-in default or active-choice conditions. This was the case even when the presence of the nudge was disclosed, and when monetary choice stakes were introduced. With monetary choice stakes, participants perceived the threat to freedom of choice as slightly higher in the nudge condition than in the other conditions, but objection to the choice architecture did not differ between the conditions. Taken together, our results suggest that default nudges are less manipulative and autonomy-infringing than sometimes feared. We recommend that policymakers include measures of choice experiences when testing out new interventions.
|
|
| 41. |
- Michaelsen, Patrik, 1989, et al.
(författare)
-
Experiencing Nudges: Choice Autonomy, Situational Intrusion and Choice Satisfaction as Judged by People Themselves
- 2017
-
Ingår i: 38th Annual Conference of the Society for Judgment and Decision Making. Vancouver: 10-13 November 2017..
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)abstract
- Experimental participants made environmental choices that were either subjected to a green (Opt-out) or non-green (Opt-in) default or presented in an active choice format. In two experiments nudging generated more environmentally friendly choices without resulting in less autonomy, more intrusion or less satisfaction. Contrarily, combined evidence shows green-default participants feeling more autonomous and satisfied vs. non-green default participants. Disclosing to participants how the current presentation format may affect their choices did not change this pattern of results. Some of the charges aimed at using nudging for policy may thus be overstated – at least as judged by people themselves.
|
|
| 42. |
|
|
| 43. |
|
|
| 44. |
- Reinholdsson, Tommy, et al.
(författare)
-
Nudging green food: The effects of a hedonic cue, menu position, a warm-glow cue, and a descriptive norm
- 2023
-
Ingår i: Journal of Consumer Behaviour. - : Wiley. - 1472-0817 .- 1479-1838. ; 22:3, s. 557-568
-
Tidskriftsartikel (refereegranskat)abstract
- Meat consumption is associated with both public health risks and substantial CO2 emissions. In a large-scale field-experiment, we applied four nudges to the digital menus in 136 hamburger restaurants. The nudges promoted vegetarian food purchases by either (1) changing the menu position of vegetarian food, or aligning vegetarian food with (2) a hedonic, taste-focused nudge, (3) the warm-glow effect, or (4) a descriptive social norm. These nudges were thus aimed to shift salience toward a certain goal or the salience of a specific alternative. Vegetarian food purchases were measured in two datasets analyzing if nudges affected customers' "route " to ordering vegetarian food (29,640 observations), and the total number of vegetarian food sold during the intervention (346,081 observations). Results showed that the position nudge affected customers route to buying vegetarian food. More specifically, making the "green category " more accessible made more customers order through that category. Interestingly, this did not affect the total number of vegetarian sales. However, results indicate that nudges that utilize the salience of goals, in particular hedonic goals, may have an overall positive effect on total vegetarian sales.
|
|
| 45. |
- Sandberg, Joakim, 1979, et al.
(författare)
-
The heterogeneity of socially responsible investment
- 2008
-
Ingår i: Journal of Business Ethics. - Dordrecht : D. Reidel. - 0167-4544 .- 1573-0697. ; 87:4, s. 519-533
-
Tidskriftsartikel (refereegranskat)abstract
- Many writers have commented on the heterogeneity of the socially responsible investment (SRI) movement. However, few have actually tried to understand and explain it, and even fewer have discussed whether the opposite – standardisation – is possible and desirable. In this article, we take a broader perspective on the issue of the heterogeneity of SRI. We distinguish between four levels on which heterogeneity can be found: the terminological, definitional, strategic and practical. Whilst there is much talk about the definitional ambiguities of SRI, we suggest that there is actually some agreement on the definitional level. There are at least three explanations which we suggest can account for the heterogeneity on the other levels: cultural and ideological differences between different regions, differences in values, norms and ideology between various SRI stakeholders, and the market setting of SRI. Discussing the implications of the three explanations for the SRI market, we suggest that there is reason to be sceptical about the possibilities of standardisation if not standardisation is imposed top-down. Whether this kind of standardisation is desirable or not, we argue, depends on what the motives for it would be. To the extent that standardisation may facilitate the mainstreaming of SRI, it could be a good thing – but we entertain doubts about whether mainstreaming really requires standardisation.
|
|
