LESSAC
Laboratoire d'Expérimentation en Sciences Sociales et Analyse des Comportements
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Researchers'Night 2013 - Behavioral finance

In 2013, in our night workshop, visitors were able to take financial decisions and risky choices.

The workshop was based on our paper on fee structure. As in the paper, in the science popularization workshop we present an experiment that investigates the effect of the fee structure and past returns on mutual fund choice. We find that subjects pay too little attention to the (periodic and small) operation expenses fee, but that the more salient front-end load is used as a commitment device and leads to lock-in into one of the funds. In addition we find that, even when subjects know that future returns are independent of past returns, these past returns are an important determinant of subjects’ investment choices. More