The Price of Luck

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Open Access

Field	Value	Language
dc.contributor.author	Bou, Silvia
dc.contributor.author	Brandts, Jordi
dc.contributor.author	Cayón, Magda
dc.contributor.author	Guillén, Pablo
dc.date.accessioned	2013-07-05
dc.date.available	2013-07-05
dc.date.issued	2013-06-01
dc.identifier.uri	http://hdl.handle.net/2123/9242
dc.description.abstract	We find that the vast majority of students taking an advanced undergraduate finance course show a preference for luck in a classroom experiment. In Phase I of the experiment part of the students, group A, were asked to guess a coin toss five times in a row. In Phase II the rest of the students, group B, were given 10 EUR to bet on some of the Group A students taking a second go at guessing a sequence of five coin tosses (Phase III). Group B students’ bets were by default allocated to the worse performing student in Phase I. Switching to better performing Group A students was costly. A total of 23 out of 28 students were willing to pay for switching and thus showed a preference for luck.	en
dc.language.iso	en_AU	en
dc.publisher	School of Economics	en
dc.relation.ispartofseries	Working papers Discipline of Economics	en
dc.rights	Other
dc.subject	Decision heuristics	en
dc.subject	hot hand fallacy	en
dc.subject	experiments	en
dc.title	The Price of Luck	en
dc.type	Working Paper	en
usyd.faculty	Faculty of Arts and Social Sciences, School of Economics
usyd.department	School of Economics	en
usyd.citation.issue	2013-10	en