Determinants of the Use of Heuristic Choice Rules in the Swedish Premium Pension Scheme: an Internet-Based Survey

Results of analyses of citizens’ choices in the Swedish premium pension scheme (Hedesstrom et al. 2004) were replicated in an Internet-based survey of fictitious choices among fund categories. Findings indicated the prevalence of a default bias, use of a diversification heuristic, a home bias, and use of the 1/n heuristic. Involvement in the scheme increased with amount to invest but decreased with age. Involvement was positively correlated with number of chosen funds, and being more involved decreased the likelihood of choosing the default fund. Naive risk diversification, home bias, and use of the 1/n heuristic were however unaffected by involvement.

Citation:

Ted Martin Hedesstrom, Henrik Svedsater, and Tommy Garling (2005) ,"Determinants of the Use of Heuristic Choice Rules in the Swedish Premium Pension Scheme: an Internet-Based Survey", in E - European Advances in Consumer Research Volume 7, eds. Karin M. Ekstrom and Helene Brembeck, Goteborg, Sweden : Association for Consumer Research, Pages: 44-44.