00Thaler_FM i-xxvi.qxd

that the problem becomes substantially more complex and that more work is required. A. Alternative Measures of Fundamental Risk ...

dictating that managers completely ignore market signals in favor of their own beliefs; rather it simply implies that they will ...

D. Portfolio Trading in the Stock of Other Firms To this point, I have ignored the possibility that managers might wish to take ...

E. Richer Models of Irrationality Finally, and perhaps most fundamentally, another area that could use fur- ther development is ...

that the cash-strapped software company should have investment that re- sponds more sensitively to movements in its stock price ...

This chapter was intended as a first cut at the problem of capital budgeting in an inefficient market, and, as such, it leaves m ...

References Ball, R., and P. Brown, 1969, Portfolio theory and accounting. Journal of Account- ing Research7, 300–23. Banz, Rolf ...

Froot, Kenneth A., David S. Scharfstein, and Jeremy C. Stein, 1993, Risk manage- ment: Coordinating corporate investment and fin ...

Stein, Jeremy C., 1988, Takeover threats and managerial myopia, Journal of Politi- cal Economy96, 61–80. ———, 1989, Efficient ca ...

Chapter 16 NAIVE DIVERSIFICATION STRATEGIES IN DEFINED CONTRIBUTION SAVINGS PLANS Shlomo Benartzi and Richard H. Thaler There is ...

Rabbi Issac bar Aha gave the following asset-allocation advice: “A man should always place his money, a third into land, a third ...

Read and Loewenstein produce the same behavior in an ingenious exper- iment conducted on Halloween night. The “subjects” in the ...

fund). This result has implications for the design of both retirement saving plans and privatized Social Security systems. These ...

replied they would be entered in a lottery in which one respondent would be paid $500. The respondents were asked one short ques ...

NAIVE DIVERSIFICATION STRATEGIES 575
    
 
 

 

...

In contrast, the final asset allocation does depend greatly on the funds of- fered. When choosing between stocks and bonds, the ...

subjects, the composition of the funds, and the pool of subjects^6 were all identical to those used in the first experiment. In ...

whether this formulation of the choice leads to different asset allocations than the more traditional formulation in condition 1 ...

NAIVE DIVERSIFICATION STRATEGIES 579 Table 16.2 Graphic Savings Questionnaire: Mean Allocation to Fund A Mean Actual Mean Implie ...

580 BENARTZI AND THALER

    
    

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