Subjective knowledge in consumer financial decision making

Hadar, L., Sood, S., and Fox, C.R. (2013) * The authors propose that attempts to increase consumers’ objective knowledge (OK) regarding financial instruments can deter willingness to invest when such attempts diminish consumers’ subjective knowledge (SK). In four studies, the authors use different SK manipulations and investment products to show that investment decisions are influenced by…

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Absolute versus relative likelihood

Fox, C. R., Levav, J. * In this paper we investigate how people construct absolute and relative likelihood judgments. We document systematic violations of two fundamental probability axioms that can occur when evidence for an event H and its complement not-H are stronger than evidence for another event L and its complement not-L. First, H is…

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