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https://hdl.handle.net/20.500.12104/92762| Title: | The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s Afores The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s AforeEl efecto halo, el conocimiento privado y la elección del fondo de retiro: un modelo teórico para el caso de las Afores de México |
| Keywords: | Halo effect;retirement;private knowledge;AFORE.;Halo effect;retirement;private knowledge;AFORE;D82;G14;G41;H55;J26. |
| Publisher: | Universidad de Guadalajara |
| Description: | Empirical evidence shows that Mexican workers frequently chose a lower-yielding retirement savings manager over a higher-yielding one, damaging their prospects for retirement income. This research paper shows that such puzzling behavior can occur as a product of the unobservable private history between workers and the companies clustered around a common brand-name, in an example of what is known as the halo effect. To support this hypothesis, a theoretical model of private knowledge and subjective probability with long-term commitment is built. Results are consistent with the idea that private-knowledge-induced halo effect can produce a rational decision process to yield an apparently irrational outcome. Empirical evidence shows that Mexican workers frequently chose a lower-yielding retirement savings manager over a higher-yielding one, damaging their prospects for retirement income. This research paper shows that such puzzling behavior can occur as a product of the unobservable private history between workers and the companies clustered around a common brand-name, in an example of what is known as the halo effect. To support this hypothesis, a theoretical model of private knowledge and subjective probability with long-term commitment is built. Results are consistent with the idea that private-knowledge-induced halo effect can produce a rational decision process to yield an apparently irrational outcome. |
| URI: | https://hdl.handle.net/20.500.12104/92762 |
| Other Identifiers: | https://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7126 10.18381/eq.v15i2.7126 |
| Appears in Collections: | Revista Econoquantum |
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