Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/32602 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
Jena Economic Research Papers No. 2010,004
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
Preference for control affects investment behavior. Participants of laboratory experiments invest different amount of money in a risky asset when face with two different methods of control which have identical payoff structure and probability distribution, but provide different sense of control. Preference for controlling and not controlling are both observed. Participants increase their investment when their preferred method of control is used. Participants who prefer to control more reduce their investment more strongly when face with less control. Preference for control has larger effect on investment behavior when participants are induced to have a comparative mindset rather than non-comparative mindset.
Subjects: 
Preference for control
sense of control
risk attitudes
illusion of control
source preference
portfolio choice
behavioral finance
comparative mindset
non-comparative mindset
JEL: 
B49
C91
D81
G11
G19
Document Type: 
Working Paper

Files in This Item:
File
Size
539.24 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.