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Journal of Behavioral Finance Volume 13, 2012 - Issue 2
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ARTICLES

Why Do Investors Buy Bad Financial Products? Probability Misestimation and Preferences in Financial Investment Decision

Marc Oliver Rieger University of Trier
Pages 108-118 | Published online: 05 Jun 2012

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Bin Wu, Lijing Tong, Min Zhang & Xin Wang. (2022) Courtesy calls for reciprocity: the effect of purchasing financial products from banks on firm borrowing. Asia-Pacific Journal of Accounting & Economics 29:3, pages 761-792.
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Vladimir Anic & Martin Wallmeier. (2020) Perceived Attractiveness of Structured Financial Products: The Role of Presentation Format and Reference Instruments. Journal of Behavioral Finance 21:1, pages 78-102.
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Articles from other publishers (39)

Shreeya Jugnandan & Gizelle D. Willows. (2023) Towards an integrated debiasing framework for consumer financial decisions: A reflection on debiasing research. International Journal of Consumer Studies 47:4, pages 1544-1560.
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Lindsay M. Stall & John V. Petrocelli. (2022) Countering conspiracy theory beliefs: Understanding the conjunction fallacy and considering disconfirming evidence. Applied Cognitive Psychology 37:2, pages 266-276.
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Atul Shiva, Nilesh Arora & Bikramjit Rishi. (2022) Do celebrity endorsements influence stock investment intentions?. Marketing Intelligence & Planning 40:6, pages 804-819.
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Rainer Baule & Patrick Muenchhalfen. (2021) What is your desire? Retail investor preferences in structured products. Review of Behavioral Finance 14:2, pages 197-222.
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Nobuyuki Hanaki. (2022) Risk misperceptions of structured financial products with worst-of payout characteristics revisited. Journal of Behavioral and Experimental Finance 33, pages 100604.
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Francesco Tommasi, Andrea Ceschi, Joshua Weller, Arianna Costantini, Giulia Passaia, Marija Gostimir  & Riccardo Sartori. (2021) An empirical evaluation of tech interventions to improve financial decision-making. European Journal of Training and Development 45:6/7, pages 633-649.
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Stephen G Dimmock, Roy Kouwenberg, Olivia S Mitchell & Kim Peijnenburg. (2021) Household Portfolio Underdiversification and Probability Weighting: Evidence from the Field. The Review of Financial Studies 34:9, pages 4524-4563.
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David Peón & Manel Antelo. (2021) The effect of behavioral biases on financial decisions. Revista Estrategia Organizacional 10:2.
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Christian Bauer & Marc Oliver Rieger. (2021) The Slow Death of Capital Protection. Journal of Risk and Financial Management 14:7, pages 303.
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Shuonan Yuan & Marc Oliver Rieger. (2020) Diversification with options and structured products. Review of Derivatives Research 24:1, pages 55-77.
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Paulo Pereira da Silva & Victor Mendes. (2021) Exchange-traded certificates, education and the disposition effect. Journal of Behavioral and Experimental Finance 29, pages 100456.
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JingMing Zhang, ShuZhen Zhu, Wei Yan & ZhiPeng Li. (2018) RETRACTED ARTICLE: The construction and simulation of internet financial product diffusion model based on complex network and consumer decision-making mechanism. Information Systems and e-Business Management 18:4, pages 545-555.
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Ibrahim Filiz, Thomas Nahmer, Markus Spiwoks & Zulia Gubaydullina. (2020) Measurement of risk preference. Journal of Behavioral and Experimental Finance 27, pages 100355.
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Zhao Ding, Awudu Abdulai & Yuansheng Jiang. (2020) What can we learn from experience? An impact analysis of experience on households' preferences for microfinance. China Agricultural Economic Review 12:2, pages 215-239.
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Anil Kumar, Gaurav Kabra, Eswara Krishna Mussada, Manoj Kumar Dash & Prashant Singh Rana. (2017) Combined artificial bee colony algorithm and machine learning techniques for prediction of online consumer repurchase intention. Neural Computing and Applications 31:S2, pages 877-890.
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Marcin Liberadzki & Kamil LiberadzkiMarcin Liberadzki & Kamil Liberadzki. 2019. Contingent Convertible Bonds, Corporate Hybrid Securities and Preferred Shares. Contingent Convertible Bonds, Corporate Hybrid Securities and Preferred Shares 123 148 .
Thomas E. Dearden. (2018) The conjunction fallacy in profiles of victims of homicide. Journal of Investigative Psychology and Offender Profiling 15:2, pages 187-199.
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Ibrahim Filiz, Thomas Nahmer, Markus Spiwoks & Kilian Bizer. (2018) Portfolio diversification: the influence of herding, status-quo bias, and the gambler’s fallacy. Financial Markets and Portfolio Management 32:2, pages 167-205.
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Rupali Misra Nigam, Sumita Srivastava & Devinder Kumar Banwet. (2018) Behavioral mediators of financial decision making – a state-of-art literature review. Review of Behavioral Finance 10:1, pages 2-41.
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Alexis H. Kunz, Claude Messner & Martin Wallmeier. (2017) Investors’ risk perceptions of structured financial products with worst-of payout characteristics. Journal of Behavioral and Experimental Finance 15, pages 66-73.
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David Peón, Manel Antelo & Anxo Calvo-Silvosa. (2017) An inclusive taxonomy of behavioral biases. European Journal of Government and Economics 6:1, pages 24-58.
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Rosella Castellano & Roy Cerqueti. (2016) A theory of misperception in a stochastic dominance framework and its application to structured financial products. IMA Journal of Management Mathematics, pages dpw007.
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Philip Blonski & Simon Christian Blonski. (2016) Are individual investors dumb noise traders. Qualitative Research in Financial Markets 8:1, pages 45-69.
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Thorsten Hens & Marc Oliver RiegerThorsten Hens & Marc Oliver Rieger. 2016. Financial Economics. Financial Economics 287 325 .
Rainer Baule, Philip Blonski, Thomas Demmer & Arnd Wiedemann. (2015) Persuasion of Individual Investors by Scenarios. Schmalenbach Business Review 67:3, pages 333-348.
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Meike A. S. Bradbury, Thorsten Hens & Stefan Zeisberger. (2015) Improving Investment Decisions with Simulated Experience*. Review of Finance 19:3, pages 1019-1052.
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Carsten Erner, Alexander Klos & Thomas Langer. (2013) Can prospect theory be used to predict an investor’s willingness to pay?. Journal of Banking & Finance 37:6, pages 1960-1973.
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Ji Cao & Marc Oliver Rieger. (2013) Risk classes for structured products: mathematical aspects and their implications on behavioral investors. Annals of Finance 9:2, pages 167-183.
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Marc Oliver Rieger & Thorsten Hens. (2012) Explaining the demand for structured financial products: survey and field experiment evidence. Zeitschrift für Betriebswirtschaft 82:5, pages 491-508.
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Nobuyuki Hanaki. (2021) Risk Misperceptions of Structured Financial Products with Worst-of Payout Characteristics Revisited. SSRN Electronic Journal.
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Rainer Baule & Patrick Münchhalfen. (2020) What is your Desire? Retail Investor Preferences in Structured Products. SSRN Electronic Journal.
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Artem Dyachenko, Walter Farkas & Marc Oliver Rieger. (2019) Volatility Dependent Structured Products. SSRN Electronic Journal.
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Marc Chesney, Felix Fattinger & Nils Jonathan Krakow. (2019) Structured Finance and Correlation Risk. SSRN Electronic Journal.
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Stephen G. Dimmock, Roy R. P. Kouwenberg, Olivia S. Mitchell & Kim Peijnenburg. (2018) Household Portfolio Underdiversification and Probability Weighting: Evidence from the Field. SSRN Electronic Journal.
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Philip Blonski & Simon Christian Blonski. (2015) Are Individual Investors Dumb Noise Traders? An Analysis of Their Cognitive Competence Based on Expert Assessments. SSRN Electronic Journal.
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Rainer Baule, Philip Blonski, Thomas Schilli & Arnd Wiedemann. (2012) Persuasion and Persuasibility of Individual Investors by Scenarios. SSRN Electronic Journal.
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Meike Bradbury, Thorsten Hens & Stefan Zeisberger. (2012) How Experience Sampling Affects Risk Taking Behavior in Financial Product Choices. SSRN Electronic Journal.
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Oliver Entrop, Alexander Schober & Marco Wilkens. (2012) The Impact of Greed and Experience on Investors’ Returns and Banks’ Margins: Evidence from Short-Term Exchange-Traded Retail Products. SSRN Electronic Journal.
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Thorsten Hens & Marc Oliver Rieger. (2009) Why do Investors Buy Structured Products?. SSRN Electronic Journal.
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