Decision Making in the Pension Fund Board Room: An Experiment with Dutch Pension Fund Trustees

H.P. van Dalen, K. Henkens, C.G. Koedijk, A.M.H. Slager

Research output: Working paperDiscussion paperOther research output

Abstract

We ask how pension fund trustees deal with the booms and busts that funds encounter, and to what extent the decisions of pension fund trustees are affected by behavioral biases. We examine these issues by using a vignette-method field experiment among Dutch pension fund trustees. We find that trustees display choices that accord with the phenomenon of loss aversion and that trustees allow their choices to be affected by the forces of social comparison: the reserve position of their fund compared to the position of other funds has a significant influence in choosing a pension fund policy mix.
LanguageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages39
Volume2010-18
StatePublished - 2010

Publication series

NameCentER Discussion Paper
Volume2010-18

Fingerprint

Pension funds
Experiment
Decision making
Field experiment
Behavioral biases
Vignettes
Loss aversion
Policy mix
Social comparison

Keywords

  • pension funds
  • finance
  • governance
  • behavioral economics

Cite this

van Dalen, H. P., Henkens, K., Koedijk, C. G., & Slager, A. M. H. (2010). Decision Making in the Pension Fund Board Room: An Experiment with Dutch Pension Fund Trustees. (CentER Discussion Paper; Vol. 2010-18). Tilburg: Macroeconomics.
van Dalen, H.P. ; Henkens, K. ; Koedijk, C.G. ; Slager, A.M.H./ Decision Making in the Pension Fund Board Room : An Experiment with Dutch Pension Fund Trustees. Tilburg : Macroeconomics, 2010. (CentER Discussion Paper).
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van Dalen, HP, Henkens, K, Koedijk, CG & Slager, AMH 2010 'Decision Making in the Pension Fund Board Room: An Experiment with Dutch Pension Fund Trustees' CentER Discussion Paper, vol. 2010-18, Macroeconomics, Tilburg.

Decision Making in the Pension Fund Board Room : An Experiment with Dutch Pension Fund Trustees. / van Dalen, H.P.; Henkens, K.; Koedijk, C.G.; Slager, A.M.H.

Tilburg : Macroeconomics, 2010. (CentER Discussion Paper; Vol. 2010-18).

Research output: Working paperDiscussion paperOther research output

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van Dalen HP, Henkens K, Koedijk CG, Slager AMH. Decision Making in the Pension Fund Board Room: An Experiment with Dutch Pension Fund Trustees. Tilburg: Macroeconomics. 2010, (CentER Discussion Paper).