Decision Making in the Pension Fund Board Room: An Experiment with Dutch Pension Fund Trustees
AbstractWe ask how pension fund trustees deal with the booms and busts that funds encounter, and to what extent the decisions of pension fund trustees are affected by behavioral biases. We examine these issues by using a vignette-method field experiment among Dutch pension fund trustees. We find that trustees display choices that accord with the phenomenon of loss aversion and that trustees allow their choices to be affected by the forces of social comparison: the reserve position of their fund compared to the position of other funds has a significant influence in choosing a pension fund policy mix.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-18.
Date of creation: 2010
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Web page: http://center.uvt.nl
pension funds; finance; governance; behavioral economics;
Find related papers by JEL classification:
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
- NEP-CBE-2010-05-02 (Cognitive & Behavioural Economics)
- NEP-EXP-2010-05-02 (Experimental Economics)
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