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To risk or not to risk? Improving financial risk-taking of older adults by online social information

Citation

Zhao, JC and Fu, WT and Zhang, H and Zhao, S and Duh, HBL, To risk or not to risk? Improving financial risk-taking of older adults by online social information, CSCW'15 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing, 14-18 March 2015, Vancouver, Canada, pp. 95-104. ISBN 9781450329224 (2015) [Refereed Conference Paper]


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Copyright 2015 ACM

DOI: doi:10.1145/2675133.2685033

Abstract

Increasing number of older adults manage their retirement savings online. A crucial element of better management is to take rational financial risk – to strike a reasonable balance between expected gain and loss under uncertainty. With the emergence of Web 2.0 technologies, social trading networks can help individuals make better financial decisions by providing information about others’ actions. It is, however, unclear whether these resources is beneficial to older adult’s own financial decisions, especially because older adults are vulnerable to poor risk management. To address this question, we devise an experiment that improves upon an existing experimental economic task. We find that both peer information (detailed choices by a few individuals) and majority information (aggregated choices of the crowd) help older adults make more risk-neutral decisions. Furthermore, the combination of peer and majority information corrects more mistakes of more risk averse older adults.

Item Details

Item Type:Refereed Conference Paper
Keywords:social information, decision-making, risk-taking, older adults, experience-based task
Research Division:Information and Computing Sciences
Research Group:Information Systems
Research Field:Computer-Human Interaction
Objective Division:Information and Communication Services
Objective Group:Computer Software and Services
Objective Field:Application Tools and System Utilities
Author:Duh, HBL (Professor Henry Duh)
ID Code:107137
Year Published:2015
Web of Science® Times Cited:1
Deposited By:Computing and Information Systems
Deposited On:2016-03-04
Last Modified:2016-08-10
Downloads:0

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