Graduation Year
2016
Date of Submission
4-2016
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Eric Hughson
Terms of Use & License Information
Rights Information
2016 Iris Liu
Abstract
Abstract
In this paper, we examine the behavior of subjects in a mock financial investment experiment to investigate the effects of “skin in the game” and ego utility on hedonic information acquisition decisions. We observe how often subjects “check” their portfolios after given general market returns, and whether conditions impact the existence and magnitude of the ostrich effect – the tendency to avoid information expected to be negative. When considering these experiment conditions as well as subject sex, risk aversion, curiosity, financial literacy and investing experience, we do not find an ostrich effect. We do find that females check their portfolios more often on average than males. Finally, we find that risk-averse people will check their portfolios more often, regardless of market returns or sex.
Recommended Citation
Liu, Iris, "Are You Smarter than an Ostrich: Does “Skin in the Game” Influence an Investor’s Portfolio Monitoring Behavior?" (2016). CMC Senior Theses. 1319.
https://scholarship.claremont.edu/cmc_theses/1319
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
