Hot hand and gambler's fallacy in teams: Evidence from investment experiments

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2015
Volume: 117
Issue: C
Pages: 327-339

Authors (4)

Stöckl, Thomas (not in RePEc) Huber, Jürgen (not in RePEc) Kirchler, Michael (not in RePEc) Lindner, Florian

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In laboratory experiments we explore the effects of communication and group decision making on investment behavior and on subjects’ proneness to behavioral biases. Most importantly, we show that communication and group decision making do not impact subjects’ overall proneness to the hot hand fallacy and to the gambler's fallacy. However, groups decide differently than individuals, as they rely significantly less on useless outside advice from “experts” and choose the risk-free option less frequently. Furthermore we document gender differences in investment behavior: groups of two female subjects choose the risk-free investment more often and are marginally more prone to the hot hand fallacy than groups of two male subjects.

Technical Details

RePEc Handle
repec:eee:jeborg:v:117:y:2015:i:c:p:327-339
Journal Field
Theory
Author Count
4
Added to Database
2026-01-25