How does people's social attachment influence their investment decision? Using empathy to explain availability bias
Year: 2021
Type: dissertation
Abstract: By conducting an online lab experiment simulating how investors work with their financial managers, we investigate how empathy influences investors’ decision to maintain the working relationship with their financial managers and how empathy influences the availability bias in investors’ decision-making. We found that investors’ affective empathy is positively related to the duration of the relationship between them and their managers, even though they may have just experienced a loss. Also, investors’ affective and cognitive empathy positively moderates their availability bias, which means that investors with high empathy are more sensitive to information from other people.
Author: Tong Li
Institution: Queensland University of Technology
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3200711401