Building a distribution builder: Design considerations for financial investment and pension decisions

Recent research suggests that advice and communication about investment risks can be improved by use of the Distribution Builder (Goldstein, Johnson, and Sharpe 2008). Essentially, this is an interactive tool that allows consumers to engage in a hypothetical investment task and to experience risk-return tradeoffs. The objective of this paper by Bas Donkers (EUR), Carlos Lourenço (EUR), Daniel Goldstein (Microsoft Research and London Business School), and Benedict Dellaert (EUR) is to provide an overview of design considerations when developing a Distribution Builder that is intended to measure two main characteristics of the risk profile of consumers: the utility function (how outcomes are valued by consumers) and the probability weighting function (the extent to which consumer perceptions of probabilities are biased). The authors focus on the domain of financial investments, in particular those related to pension funds.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk. Netspar is gericht op een goed geïnformeerd pensioendebat.

MEER OVER NETSPAR


Missie en strategie           •           Netwerk           •           Organisatie           •          Podcasts
Board Brief            •            Werkprogramma 2023-2027           •           Onderzoeksagenda

OVER NETSPAR

Onze partners

vu
NN_logo_gray
B20190901_nidi-logo_greyscale
B20160708_apg
B20160708_ministeries
Bekijk al onze partners