Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/25113
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dc.contributor.authorNewall, Philip W Sen_UK
dc.contributor.authorLove, Bradley Cen_UK
dc.date.accessioned2017-03-08T22:34:16Z-
dc.date.available2017-03-08T22:34:16Z-
dc.date.issued2015-10en_UK
dc.identifier.urihttp://hdl.handle.net/1893/25113-
dc.description.abstractInvestors significantly reduce their future returns by selecting mutual funds with higher fees, allured by higher past returns that do not predict future performance. This suboptimal behavior, which can roughly halve an investor’s retirement savings, is driven by 2 psychological factors. One factor is difficulty comprehending rate information, which is critical given that mutual fund fees and returns are typically communicated in percentages. A second factor is devaluing small differences in returns or fees (i.e., a peanuts effect). These 2 factors interact such that large investors benefit when fees are stated in currency (as opposed to percentages), whereas small investors benefit from returns stated in currency. These striking results suggest behavioral interventions that are tailored specifically for small and large investors.en_UK
dc.language.isoenen_UK
dc.publisherAmerican Psychological Associationen_UK
dc.relationNewall PWS & Love BC (2015) Nudging investors big and small toward better decisions, Decision, 2 (4), pp. 319-326. https://doi.org/10.1037/dec0000036.en_UK
dc.rightsThis article may not exactly replicate the final version published in the APA journal. It is not the copy of record. Published in Decision, Vol 2(4), Oct 2015, 319-326 by American Psychological Association: https://doi.org/10.1037/dec0000036en_UK
dc.titleNudging investors big and small toward better decisionsen_UK
dc.typeJournal Articleen_UK
dc.identifier.doi10.1037/dec0000036en_UK
dc.citation.jtitleDecisionen_UK
dc.citation.issn2197-1722en_UK
dc.citation.issn0304-0941en_UK
dc.citation.volume2en_UK
dc.citation.issue4en_UK
dc.citation.spage319en_UK
dc.citation.epage326en_UK
dc.citation.publicationstatusPublisheden_UK
dc.citation.peerreviewedRefereeden_UK
dc.type.statusAM - Accepted Manuscripten_UK
dc.contributor.affiliationEconomicsen_UK
dc.contributor.affiliationUniversity College Londonen_UK
dc.identifier.scopusid2-s2.0-84992076207en_UK
dc.identifier.wtid534045en_UK
dc.date.firstcompliantdepositdate2017-03-08en_UK
Appears in Collections:Economics Journal Articles

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