[VCEE Seminar] VCEE Seminar 24.1.2020
Mailing list of the VCEE seminar series
vcee-seminar at lists.univie.ac.at
Thu Jan 23 15:35:19 CET 2020
Dear all,
You are cordially invited to attend the VCEE seminar on *Friday, Jan 24
^from 10:00-12:00* (SR 1, Ground floor). We have two speakers: Dotan
Persitz (U Tel Aviv) and
Gönül Dogan (U Köln)
*10:00-11:00 Dotan Persitz *(U Tel Aviv)
Titel: *Design Invariance in the Classic Consumer Choice Problem*
**
**
*11:00-12:00 Gönül Dogan *(U Köln)
Titel: *Pyramid Schemes*
with Kenan Kalaycı and Priscilla Man
Abstract.
Ponzi and pyramid schemes promise a large return for investors with
limited risk. In reality, most investors lose money when such schemes
collapse due to a lack of new entrants. In an online experiment without
deception, we invite participants to invest their endowment in a
pyramid-like investment scheme with a negative expected return. We find
that more than half of the subjects are willing to invest in the scheme
regardless of their age, gender, years of schooling, trust levels, and
income. Complexity of the decision-making in the pyramid scheme plays an
important role in investment; the size of the group, difficulty of
calculating average payoff outcomes as well as the percentage of losers
contribute to complexity. Risk tolerance and preference for positively
skewed outcomes partially explain investment decisions. Our findings
suggest that pyramid schemes can be attractive even in the absence of
deceptive recruitment efforts by scheme founders.
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