Name-Based Behavioral Biases: Are Expert Investors Immune?
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| Title: | Name-Based Behavioral Biases: Are Expert Investors Immune? |
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| Authors: | Itzkowitz, Jennifer (AUTHOR), Itzkowitz, Jesse (AUTHOR) |
| Source: | Journal of Behavioral Finance. Apr-Jun2017, Vol. 18 Issue 2, p180-188. 9p. |
| Subjects: | Investors, Businesspeople, Heuristic, Hypothesis, Alphabetizing |
| Abstract: | The market comprises investors with a broad range of expertise. As a result, investors may make decisions differently from one another. Research reveals that investors use name-based heuristics, or short-cuts, including alphabetical ordering (Itzkowitz, Itzkowitz, and Rothbort [2015]), name fluency (Anderson and Larkin [2012], Green and Jame [2013]), and name memorability (Grullon, Kanatas, and Weston [2004]) when trading stocks, resulting in irrational decisions. Because experts and novices process information differently, name-based biases may not affect all investors equally. The authors test and confirm the hypothesis that, compared to novices, expert investors are relatively immune to name-based biases. [ABSTRACT FROM PUBLISHER] |
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| Database: | Psychology and Behavioral Sciences Collection |
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| Abstract: | The market comprises investors with a broad range of expertise. As a result, investors may make decisions differently from one another. Research reveals that investors use name-based heuristics, or short-cuts, including alphabetical ordering (Itzkowitz, Itzkowitz, and Rothbort [2015]), name fluency (Anderson and Larkin [2012], Green and Jame [2013]), and name memorability (Grullon, Kanatas, and Weston [2004]) when trading stocks, resulting in irrational decisions. Because experts and novices process information differently, name-based biases may not affect all investors equally. The authors test and confirm the hypothesis that, compared to novices, expert investors are relatively immune to name-based biases. [ABSTRACT FROM PUBLISHER] |
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| ISSN: | 15427560 |
| DOI: | 10.1080/15427560.2017.1308940 |
