Biases in Using Information to Evaluate Uncertain Financial Prospects

Uma Karmarkar, Harvard Business School, USA
Alexander Peysakhovich, Harvard University, USA
We demonstrate biases in how people use favorable versus unfavorable information in uncertain decisions, and show that they arise from a combination of multiple mechanisms. Our findings also reveal that the relationship of information to subjective or “felt” certainty is a critical factor in determining the extent of these biases.
[ to cite ]:
Uma Karmarkar and Alexander Peysakhovich (2015) ,"Biases in Using Information to Evaluate Uncertain Financial Prospects", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 260-264.