Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.12104/92762
Title: The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s Afores
The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s AforeEl efecto halo, el conocimiento privado y la elección del fondo de retiro: un modelo teórico para el caso de las Afores de México
Keywords: Halo effect;retirement;private knowledge;AFORE.;Halo effect;retirement;private knowledge;AFORE;D82;G14;G41;H55;J26.
Publisher: Universidad de Guadalajara
Description: Empirical evidence shows that Mexican workers frequently chose a lower-yielding retirement savings manager over a higher-yielding one, damaging their prospects for retirement income. This research paper shows that such puzzling behavior can occur as a product of the unobservable private history between workers and the companies clustered around a common brand-name, in an example of what is known as the halo effect. To support this hypothesis, a theoretical model of private knowledge and subjective probability with long-term commitment is built. Results are consistent with the idea that private-knowledge-induced halo effect can produce a rational decision process to yield an apparently irrational outcome.
Empirical evidence shows that Mexican workers frequently chose a lower-yielding retirement savings manager over a higher-yielding one, damaging their prospects for retirement income. This research paper shows that such puzzling behavior can occur as a product of the unobservable private history between workers and the companies clustered around a common brand-name, in an example of what is known as the halo effect. To support this hypothesis, a theoretical model of private knowledge and subjective probability with long-term commitment is built. Results are consistent with the idea that private-knowledge-induced halo effect can produce a rational decision process to yield an apparently irrational outcome.
URI: https://hdl.handle.net/20.500.12104/92762
Other Identifiers: https://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7126
10.18381/eq.v15i2.7126
Appears in Collections:Revista Econoquantum

Files in This Item:
There are no files associated with this item.


Items in RIUdeG are protected by copyright, with all rights reserved, unless otherwise indicated.