Julie Agnew|Lisa R. Szykman
Asset Allocation and Information Overload: The Influence of Information Display, Asset Choice and Investor Experience
William & Mary
paper investigates three common differences among dc plans may lead varying degrees information overload hypothesize information overload one reason dc participants often choose default options two experiments manipulate display investment information number choices offered similarity choices addition measure financial knowledge participants test factors influence participants feelings information overload decision satisfaction choice default main contribution analysis explores interaction individuals tested financial knowledge manipulated plan features study women relatively lower salaries less education tend fall low knowledge category findings show changes plan design help individuals find individuals average financial knowledge report significantly less overload given fewer investment choices confirms previous research plan design important results also show financial knowledge plays large role opts default find low knowledge individuals opt default allocation often high knowledge individuals experiment one 20 vs 2 findings suggest individuals average knowledge simply overwhelmed investment decision general altering plan offering investment information easily comparable format reducing choices offered attenuate low knowledge individuals feelings overload findings suggest success certain plan features depends strongly financial background participant results emphasize importance plan design especially careful selection plan default options need improve financial literacy participants