Excessive extrapolation and the allocation of 401(k) accounts to company stock

Journal of Finance

Volumn 56, Issue 5, 2001, Pages 1747-1764

  Benartzi, Shlomo ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0039785291     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/0022-1082.00388     Document Type: Article

References (29)

1. Anand, Vineeta, 1996, Boxer's 401k bill to affect few plans, Pensions and Investments, June 10, 4.
2. Barber, Brad, and Terrance Odean, 2000, Trading is hazardous to your wealth: The common stock investment performance of individual investors, Journal of Finance 55, 773-806.
3. Benartzi, Shlomo, Daniel Kahneman, and Richard H. Thaler, 1999, Optimism and over-confidence in asset allocation decisions, news.morningstar.com/news/MS/Commentary/990423comm-1.html.
4. Benartzi, Shlomo, and Richard H. Thaler, 1995, Myopic loss-aversion and the equity premium puzzle, Quarterly Journal of Economics 110, 73-92.
5. Benartzi, Shlomo, and Richard H. Thaler, 1999, Risk aversion or myopia? Choices in repeated gambles and retirement investments, Management Science 45, 364-381.
6. Benartzi, Shlomo, and Richard H. Thaler, 2001, Naive diversification strategies in retirement saving plans, American Economic Review 91-1, 79-98.
7. Brennan, Michael, and Walter N. Torous, 1999, Individual decision-making and investor welfare, Working paper, UCLA.
8. Carhart, Mark M., 1997, On persistence in mutual fund performance, The Journal of Finance 52, 57-82.
9. Clark, Robert, Gordon P. Goodfellow, Sylvester J. Schieber, and Drew A. Warsick, 1998, Making the most of 401(k) plans: Who's choosing what and why, Working paper, Pension Research Council, University of Pennsylvania.
10. Fama, Eugene F., and Kenneth R. French, 1993, Common risk factors in the returns on stocks and bonds, Journal of Financial Economics 33, 3-56.
11. Griffin, Dale, and Amos Tversky, 1992, The weighing of evidence and the determinants of confidence, Cognitive Psychology 24, 411-435.
12. Heath, Chip, and Amos Tversky, 1991, Preferences and beliefs: Ambiguity and competence in choice under uncertainty, Journal of Risk and Uncertainty 4, 5-28.
13. Huberman, Gur, 1997, Familiarity breeds investment, Working paper, Columbia University.
14. Institute of Management Administration, 1997, DC Plan Investing, IOMA: New York, NY.
15. John Hancock Financial Services, 1999, The sixth defined contribution plan survey.
16. Kahneman, Daniel, and Amos Tversky, 1972, Subjective probability: A judgment of representativeness, Cognitive Psychology 3, 430-454.
17. Markowitz, Harry M., 1952, Portfolio selection, Journal of Finance 7, 77-91.
18. Mowday, Richard T., Richard M. Steers, and Lyman M. Porter, 1979, The measurement of organizational commitment, Journal of Vocational Behavior 14, 224-247.
19. Odean, Terrance, 1999, Do investors trade too much? American Economic Review 89, 1279-1298.
20. Oskamp, Stuart, 1965, Overconfidence in case-study judgments, Journal of Consulting Psychology 29, 261-265.
21. Patel, Jayendu, Richard Zeckhauser, and Darryll Hendricks, 1991, The rationality struggle: Illustrations from financial markets, American Economic Review 81, 232-236.
22. Poterba, James M., and David A. Wise, 1998, Individual financial decisions in retirement saving plans and the provision of resources for retirement, in M. Feldstein, ed.: Privatizing Social Security (University of Chicago Press: Chicago, IL).
23. Samuelson, William, and Richard J. Zeckhauser, 1988, Status quo bias in decision making, Journal of Risk and Uncertainty 1, 7-59.
24. Sharpe, William F., 1964, Capital asset prices: A theory of market equilibrium under conditions of risk, Journal of Finance 19, 425-442.
25. Tversky, Amos, and Daniel Kahneman, 1974, Judgment under uncertainty: Heuristics and biases, Science 185, 1124-1131.
26. U.S. Department of Labor, September 16, 1997, Hearing of the ERISA Advisory Council on employee welfare and pension benefit plans.
27. U.S. General Accounting Office, September 16, 1997, Presentation made to the ERISA Advisory Council.
28. VanDerhei Jack Russell Galer, Carol Quick, and John Rea, 1999, 401(k) plan asset allocation, account balances, and loan activity, EBRI Issue Brief 205, EBRI: Washington, DC.
29. Weinstein, Neil D., 1980, Unrealistic optimism about future life events, Journal of Personality and Social Psychology 39, 806-820.