The Price of luck
Bou Ysàs, Sílvia
Cayón Costa, Magda
Brandts, Jordi (Institut d'Anàlisi Econòmica)
Guillén, Pablo
Imprint: |
Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa 2013 |
Description: |
26 p. |
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. |
Rights: |
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades. |
Language: |
Anglès |
Series: |
Departament d'Economia de l'Empresa. Documents de treball |
Series: |
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa) ; 13/4 |
Document: |
Working paper |
Subject: |
Heurística |
The record appears in these collections:
Research literature >
Working papers >
Department of Business. Working papers
Record created 2014-02-12, last modified 2024-05-25