Survey_FW_2013

Abstract

Our experiment created a web-based user interface to provide subjects with ten fictional mutual fund choices. Information about each of the choices was provided through clickable links. Investors allocated an investment among the ten funds and our software recorded their allocation decisions. In addition, our website required investors to click through the site in order to obtain specific information about fund choices and their attributes. Because our technology allowed us to collect these clicks, we are able to identify which information investors reviewed. After the subjects submitted their allocations, we collected additional survey information about the subjects’ beliefs, risk preferences and investment experience, as well as demographic information. Subjects were instructed to allocate an initial $10,000 among the ten fund choices. The experiment did not permit subjects to submit an allocation unless their allocations totaled exactly 100% of the $10,000. The subjects were told that they were investing for retirement and that the overall value of their portfolio would be calculated based on a simulated thirty-year performance. We attempted to provide an incentive for subjects to allocate carefully by instructing them that they would be paid a bonus based on the performance of the portfolio that they chose.