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

26 p, 340.4 KB

The record appears in these collections:
Research literature > Working papers > Department of Business. Working papers