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Stated and revealed investment decisions concerning retail structured products

  • Döbeli, Barbara
  • Vanini, Paolo

We analyze the investment behavior of private clients with regard to retail structured products. To ascertain their stated and revealed preferences, we use a questionnaire and a field experiment. The real product issued in the field experiment is comparable to the hypothetical product in the questionnaire in terms of both payoff and communication. We find that a product described in simple words strongly motivates people to invest in structured products for the first time, and also eliminates gender differences. However, the real product attracts far fewer first-time buyers than we expected from the questionnaire results.

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Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 34 (2010)
Issue (Month): 6 (June)
Pages: 1400-1411

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Handle: RePEc:eee:jbfina:v:34:y:2010:i:6:p:1400-1411
Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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