The Price of Luck
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_AU |
dc.language.iso | en_AU | en_AU |
dc.publisher | School of Economics | en_AU |
dc.relation.ispartofseries | 2013-10 | en_AU |
dc.subject | Decision heuristics | en_AU |
dc.subject | hot hand fallacy | en_AU |
dc.subject | experiments | en_AU |
dc.title | The Price of Luck | en_AU |
dc.type | Working Paper | en_AU |
dc.contributor.department | School of Economics | en_AU |
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