To risk or not to risk? improving financial risk-Taking of older adults by online social information

Jason Chen Zhao, Wai Tat Fu, Hanzhe Zhang, Shengdong Zhao, Henry Been Lirn Duh

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

10 Citations (Scopus)

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 riskaverse older adults.

Original languageEnglish
Title of host publicationCSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing
PublisherAssociation for Computing Machinery, Inc
Pages95-104
Number of pages10
ISBN (Electronic)9781450329224
DOIs
Publication statusPublished - 28 Feb 2015
Externally publishedYes
Event18th ACM International Conference on Computer-Supported Cooperative Work and Social Computing, CSCW 2015 - BC, Canada
Duration: 14 Mar 201518 Mar 2015

Publication series

NameCSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing

Conference

Conference18th ACM International Conference on Computer-Supported Cooperative Work and Social Computing, CSCW 2015
Country/TerritoryCanada
CityBC
Period14/03/1518/03/15

Keywords

  • Decision-Making
  • Experience-Based Task
  • Older Adults
  • Risk-Taking
  • Social Information

ASJC Scopus subject areas

  • Computer Networks and Communications

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