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_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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