Andrea Leuermann - Benjamin Rothy - July 2012 -- Abstract
Advice is important for decision making, especially in the nancial sector. We investigate how individuals assess risk preferences of others given sociodemographic information or pictures. Both non-professionals and nancial professionals participate in this artefactual eld experiment.
Subjects mainly rely on the other's self-assessment of risk preferences and on gender when forming the belief about someone else's risk preferences.
On average, subjects consider themselves to be more risk-tolerant than the person they evaluate. Subjects use their own risk attitude as a reference point for predicting others' risk preferences. This false consensus e ect is less pronounced for young professionals than for senior and non-professionals. Furthermore, nancial professionals predict risk preferences more accurately compared to non-professionals.