Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/151515
Title: Fee structure and mutual fund choice : an experiment
Authors: Anufrie, Mikhail
Bao, Te
Sutan, Angela
Tuinstra, Jan
Keywords: Social sciences::Economic theory
Issue Date: 2019
Source: Anufrie, M., Bao, T., Sutan, A. & Tuinstra, J. (2019). Fee structure and mutual fund choice : an experiment. Journal of Economic Behavior and Organization, 158, 449-474. https://dx.doi.org/10.1016/j.jebo.2018.12.013
Project: M4018740
RG68/16
Journal: Journal of Economic Behavior and Organization
Abstract: We present a laboratory experiment designed to investigate the effect of the fee structure on mutual fund choice. We find that subjects tend to ignore periodic and small operating expenses fees and base their decisions on gross, instead of net, returns. A fee in the form of a, much larger, front-end load leads to lock-in into one of the funds. It is used by some subjects as a commitment device, but exacerbates the decision errors of other subjects. Although past returns do not convey information about future returns, return chasing helps explain subjects’ behavior.
URI: https://hdl.handle.net/10356/151515
ISSN: 0167-2681
DOI: 10.1016/j.jebo.2018.12.013
Schools: School of Social Sciences 
Departments: Division of Economics
Rights: © 2018 Elsevier B.V. All rights reserved.
Fulltext Permission: none
Fulltext Availability: No Fulltext
Appears in Collections:SSS Journal Articles

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