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The Psychology of Investment Behavior: (De)biasing Financial ...

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The Psychology of Investment Behavior: (De)biasing Financial ...

Consumers' welfare largely depends on the soundness of their financial decisions. To this effect, the present research examines how people process graphical displays of financial information (e.g., stock-prices) to forecast future trends and invest accordingly. In essence, we ask whether and how visual biases in data interpretation impact financial decision-making and risk-taking. Five experiments find that the last trading day(s) of a stock b...

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