Reference-Dependent Investment Choice: Theory, Methodology and Empirical and Experimental Evidence

Project: FDCRGP

Project Details

Grant Program

Faculty Development Competitive Research Grant Program (General) 2024-2026

Project Description

The objective of this research project is to develop, test and apply reference-dependent theories for financial investors and investment problems and help develop problem formulation and decision-support tools for improving financial investment decision quality. Specific features of investment problems include their multivariate and intertemporal nature and the role of ambiguity (probability distributions are unknown and must be estimated). These features generally increase the cognitive complexity of the choice tasks, which introduces a role for simplifying choice heuristics, simplified problem formulations as well as decision support by professional specialists, advisors, and software (including Artificial Intelligence).
AcronymRDIC
StatusActive
Effective start/end date1/1/2412/31/26

Keywords

  • Behavioral Finance
  • Portfolio Choice
  • Investments
  • Asset Pricing

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