Decision making in the pension fund board room

This research examines the extent to which decision-making by pension fund trustees is affected by behavioural biases, by using a vignette-method field experiment among Dutch trustees. It finds that trustees display choices that accord with the phenomenon of loss aversion and allow their choices to be affected by the forces of social comparison: the reserve position of their fund compared to the position of others has siginificant influence in choosing a pension fund policy mix.

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