Risk Management Best Practice
While much is known about behavioral anomalies and their effect on the decision-making of financial professionals in uncertain and competitive environments, far less is known about their effect on decision-making on behalf of another person or institution, which are precisely the most important and influential decisions that professionals make.
In an experimental study, the project creates clients and professionals, and controlling for important characteristics of the match between the two, studies how decisions are made for the client. For the first time, the project will reveal how professionals take into account the preferences of their clients and how the preferences of the professionals influence their own decision-making on a client’s behalf.
|Project Lead:||Jim Engle-Warnick|
publications and links
Jim Engle-Warnick is an experimental economist and Associate Professor of Economics at McGill University. He previously held a Post-Doctoral Research Fellowship in the Economics Group at Nuffield College, University of Oxford. Jim holds a BSEE from the University of Akron, an MBA from Carnegie Mellon University and a Ph.D. from the University of Pittsburgh. His research focus is on the behaviour of trust, price dispersion, buyer concentration, and central bank decision-making.