The demand for structured products: an experimental approach
Scholar | Other documents of the author: Matallín Sáez, Juan Carlos; Breaban, Adriana Gabriela; Barreda-Tarrazona, Iván; Balaguer Franch, María del Rosario
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TitleThe demand for structured products: an experimental approach
Guaranteed investment funds are showing an important growth in the mutual fund industry. We analyze this type of fund’s demand using the experimental methodology. Different types of structured guaranteed funds, with ... [+]
Guaranteed investment funds are showing an important growth in the mutual fund industry. We analyze this type of fund’s demand using the experimental methodology. Different types of structured guaranteed funds, with certain combinations of secured and additional benefits, are sequentially offered to university students who act as investors. Subjects also have the possibility to buy bonds. Our results show that information available to investors, and particularly the order in which it is presented, generates significant biases in their decision making which can have both positive and negative effects on their financial behavior. In fact, when the investment alternatives are made easier to compare, “too good to be true” investment offers get more easily spotted, while “guaranteed” investment products with a positive evolution result overvalued in comparison to bonds. [-]
© 2014 Wiley Publishing Asia Pty Ltd "This is the pre-peer reviewed version of the following article: BREABAN, Adriana Gabriela, et al. The demand for structured products: an experimental approach. 2012., which has been published in final form at http://dx.doi.org/10.1111/1468-0106.12069. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving."