Home > Research literature > Working papers > The Price of luck |
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: | L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: |
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 |