An Experimental Study of Saving and Investing in a Complex Stochastic Environment
Optimal intertemporal decision making in a stochastic environment requires considerable analytical skills. Boundedly rational decision makers typically fail in achieving the best outcome. Thus, experimental studies of intertemporal decision making (see the selective survey1 of Anderhub and Güth, 1999) may offer stylized facts which can guide our intuition about how boundedly rational decision makers generate choices.
KeywordsIndividual Investment Investment Level Risk Neutrality Fourth Period Average Investment
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