Behavioral Finance

June 2019

Most retirement plans let participants allocate their contributions among a menu of investment options – and this decision can have a substantial effect on a retirement portfolio’s ultimate value.

June 2019

Finance theory assumes that investors maximize risk-adjusted returns when choosing portfolios. In reality, some people are also influenced by irrelevant factors, such as cosmetic changes to investment fund names.

June 2019

Opportunities to borrow increased considerably in the U.S. over the past few decades, and many Americans today are approaching retirement with high levels of debt.

June 2019

When making financial decisions under uncertain conditions, do people actually behave as widely used theories predict?

June 2019

The past several decades have seen major changes in the nature of retirement benefits for workers, including pension programs for public-sector employees.

January 2019

Given the choice between a smaller immediate payout or a larger future payout, people generally prefer rewards sooner rather than later, a tendency called temporal discounting.

January 2019

Given the choice between a smaller immediate payout or a larger future payout, people generally prefer rewards sooner rather than later, a tendency called temporal discounting.

July 2018

Understanding the prevalence, diversity and predictive power of behavioral factors—deviations from classical assumptions about consumer choice—is critical for theory, research and policy.

June 2018

Conventional economic models assume that investors confronted with risky choices maximize expected utility; yet in the real world, people are prone to making predictable errors.