Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Growth and decline of assets: On biased judgments of asset accumulation and investment decisions
Stockholm University, Faculty of Social Sciences, Department of Psychology.
Stockholm University, Faculty of Social Sciences, Department of Psychology. Decision Research, Oregon, USA.
2014 (English)In: Polish Psychological Bulletin, ISSN 0079-2993, E-ISSN 1641-7844, Vol. 45, no 1, 29-35 p.Article in journal (Refereed) Published
Abstract [en]

Previous research showed that accumulations of capital following stationary interest rates are underestimated byhuman judges. Hyperbolic discounting was suggested as a descriptive and explanatory model for this phenomenon. First,we investigated judged accumulated capital after a period of annual growth and decline. The degree of underestimationincreased with accumulated growth and the results supported hyperbolic discounting as a descriptive model on the grouplevel. However, the hyperbolic model did not apply to the data for one third of the participants. Second, we investigatedhow investment decisions were related to capital accumulation before the investments and to judgments of the possibleoutcomes of the future investments. To our surprise, the participants’ judgments of expected future accumulated capitaldid not add predictive power to predictions based on whether there was growth or decline before the investment decision.Unfortunately this strategy leads to suboptimal investment decisions.

Place, publisher, year, edition, pages
2014. Vol. 45, no 1, 29-35 p.
Keyword [en]
investment decisions, discounting, uncertainty, growth, decline
National Category
Psychology Applied Psychology
Research subject
Psychology
Identifiers
URN: urn:nbn:se:su:diva-102579DOI: 10.2478/ppb-2014-0005OAI: oai:DiVA.org:su-102579DiVA: diva2:711360
Available from: 2014-04-10 Created: 2014-04-10 Last updated: 2017-12-05Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Gonzalez, NichelSvenson, Ola
By organisation
Department of Psychology
In the same journal
Polish Psychological Bulletin
PsychologyApplied Psychology

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 71 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf