We conduct a laboratory experiment to investigate how people make discrete choice between several profitable experimental funds in many periods. The experimental data suggest that people tend to make decision based on the past performance of the funds, and put high weight on most recent one or two periods. A logit model is estimated and the result suggests that the way people switch is also related to the type of pro t dynamics they see on the computer screen.
MAR152011
Switching Behavior in the Lab
PhD Lunch Seminars Amsterdam
- Speaker(s)
- Te Bao
- Date
- 2011-03-15
- Location
- Amsterdam