The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s Afores
Empirical evidence shows that Mexican workers frequently chose a lower-yielding retirement savings manager over a higher-yielding one, damaging their prospects for retirement income. This research paper shows that such puzzling behavior can occur as a product of the unobservable private history betw...
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2018 |
| País: | México |
| Institución: | UNIVERSIDAD DE GUADALAJARA |
| Repositorio: | EconoQuantum |
| Idioma: | inglés |
| OAI Identifier: | oai:econoquantum.cucea.udg.mx:article/7126 |
| Acceso en línea: | https://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7126 |
| Access Level: | acceso abierto |
| Palabra clave: | Halo effect retirement private knowledge AFORE. AFORE D82 G14 G41 H55 J26. |
| Sumario: | Empirical evidence shows that Mexican workers frequently chose a lower-yielding retirement savings manager over a higher-yielding one, damaging their prospects for retirement income. This research paper shows that such puzzling behavior can occur as a product of the unobservable private history between workers and the companies clustered around a common brand-name, in an example of what is known as the halo effect. To support this hypothesis, a theoretical model of private knowledge and subjective probability with long-term commitment is built. Results are consistent with the idea that private-knowledge-induced halo effect can produce a rational decision process to yield an apparently irrational outcome. |
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