Bryan C. McCannon|Colleen Tokar Asaad|Mark Wilson
Financial competence, overconfidence, and trusting investments: Results from an experiment
West Virginia University|Baldwin–Wallace College|St. Bonaventure University
financial transactions sometimes occur environment thirdparty enforcement lacking behavioral explanations typically allude social preferences individuals utility directly affected anothers outcome driver trusting investments reciprocal returns hypothesize part decisions determined individuals financial literacy overconfidence ones knowledge experimental evidence coupled innovative financial literacy assessment measures general competence numeracy skills overconfidence ones knowledge results indicate overconfidence significant determinant behavior specifically overconfident individuals make larger contributions investment game also document escalated effect overconfident individuals also exhibit risk loving preferences