Choosing Outcomes versus Choosing Products: Consumer‐Focused Retirement Investment Advice
Investing for retirement is one of the most consequential yet daunting decisions consumers face. We present a way to both aid and understand consumers as they construct preferences for retirement income. The method enables consumers to build desired probability distributions of wealth constrained by...
| Veröffentlicht in: | Journal of Consumer Research. - University of Chicago Press. - 35(2008), 3, Seite 440-456 |
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| Format: | Online-Aufsatz |
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2008
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| Zugriff auf das übergeordnete Werk: | Journal of Consumer Research |
| Schlagworte: | Behavioral Decision Theory Consumer Information/Education Consumer Welfare/Quality of Life Perceived Risk Preferences Economics Behavioral sciences Mathematics Daniel G. |
| Zusammenfassung: | Investing for retirement is one of the most consequential yet daunting decisions consumers face. We present a way to both aid and understand consumers as they construct preferences for retirement income. The method enables consumers to build desired probability distributions of wealth constrained by market forces and the amount invested. We collect desired wealth distributions from a sample of working adults, provide evidence of the technique’s reliability and predictive validity, characterize individual‐ and cluster‐level differences, and estimate parameters of risk aversion and loss aversion. We discuss how such an interactive method might help people construct more informed preferences. |
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| Beschreibung: | * Daniel G. Goldstein is an assistant professor of marketing, London Business School, London, NW1 4SA, United Kingdom ( dgoldsteinlondon.edu ). Eric J. Johnson is Norman Eig Professor of Business, Columbia University, New York, NY 10027 ( ejj3@columbia.edu ). William F. Sharpe is the STANCO 25 Professor of Finance, Emeritus, Stanford University Graduate School of Business, 518 Memorial Way, Stanford, CA 94305‐5015 ( wfsharpe@stanford.edu ). This research has been supported by the Columbia Center for Excellence in E‐Business and by National Science Foundation grant SES‐0352062 to Eric J. Johnson. The authors thank the editors and reviewers, in addition to the following people, for help in developing this article: Beatrice Belizaire, Shlomo Benartzi, Phil Blythe, Noel Capon, Isaac Dinner, Emel Filiz, Wendy Garrido, Dominique Goldstein, John Hauser, Bruce Hardie, Peggy Hu, Raghu Iyengar, Anja Lambrecht, John Payne, Margaret Pierson, Drazen Prelec, Duncan Simester, Richard Thaler, Elke Weber, Martijn Willemsen, and Besir Wrayet. |
| ISSN: | 15375277 |
| DOI: | 10.1086/589562 |