Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73879
Authors: 
Stöckl, Thomas
Huber, Jürgen
Kirchler, Michael
Lindner, Florian
Year of Publication: 
2013
Series/Report no.: 
Working Papers in Economics and Statistics 2013-04
Abstract: 
In laboratory experiments we explore the effects of communication and group decision making on investment behavior and on subjects’ proneness to behavioral biases. Most importantly, we show that communication and group decision making does not impact subjects’ overall proneness to biases like gambler’s fallacy and hot hand belief. However, groups decide differently than individuals as they rely significantly less on useless outside advice from “experts” and choose the risk-free option less frequently. Finally, we document gender differences in investment behavior: groups of two female subjects choose the risk-free investment more often and are slightly more prone to the hot hand belief than groups of two male subjects.
Subjects: 
Hot hand belief
Gambler’s fallacy
Experimental finance
Experts
Team decision making
JEL: 
C91
C92
D81
G10
Document Type: 
Working Paper

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