Robo advice or personal financial advice: Effects on behavioral anomalies regarding retail investors‘ decisions


A large number of empirical studies points to the existence of systematic errors in individual decision-making, which forms the basis of the popular field of behavioral economics. In this case, the deviation of an individual’s decision from the normatively right one determined by Expected Utility Theory is considered to be erroneous. One can observe these irrationalities especially when it comes to the perception and processing of information. In addition to that, there are inconsistencies concerning the identification of alternatives and the selection of the final decision.

Our research project is predicated on the assumption that an automated investment decision-making process based on so-called robo advisors may widely inhibit the occurrence of systematic errors. In addition to that, we investigate whether new systematic errors may arise in this context or may even be induced by the way of presenting the decision problem.

The project is supported by the “Wissenschaftsförderung der Sparkassen-Finanzgruppe“ and conducted in cooperation with the “Hochschule der Sparkassen-Finanzgruppe“.



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