Monday, 10th April 2017
13:00 - 14:00
CESS Seminar Rooms - 3 George Street Mews
Do Banks Distort Choices?
Financial Institutions are obliged to assess the appropriateness of investment products for their customers and to offer their customers only suitable products. Thereby, the suitability assessment includes the customers’ preferences regarding risk taking, which are often elicited in a naïve way. Whereas past research analysed how the risk assessment can be improved, we want to examine the impact of this noisy risk elicitation on consumer choice. Therefore, we are presenting two theoretical predictions and an experimental design to test those predictions.