Behaviour and costly portfolio mistakes

Stephen Wendel, Morningstar's head of behavioural science, on how investors can change their behaviour and avoid costly mistakes.
By Morningstar |  01-07-16

1 See Mazar, Nina, On Amir, and Dan Ariely 2008. “The Dishonesty of Honest People: A Theory of Self-Concept Maintenance.” Journal of Marketing Research, Vol. 45, No. 6, P. 633–44.

2 See Ariely, Dan 2012. The Honest Truth About Dishonesty: How We Lie to Everyone—Especially Ourselves. (New York: Harper Collins).

3 See McKenzie, Scott 2009. “Driven to Cheat: A Study on the Drivers of Dishonesty—Through the Game of Golf,” April. See also Ariely (2012).

4 Creativity: Gino, Francesca, and Dan Ariely 2012. “The Dark Side of Creativity: Original Thinkers Can Be More Dishonest.” Journal of Personality and Social Psychology, Vol. 102, No. 3, P. 445–59. Seeing others, teams: Gino, Francesca, Shahar Ayal, and Dan Ariely 2009. “Contagion and Differentiation in Unethical Behavior: The Effect of One Bad Apple on the Barrel.” Psychological Science, Vol. 20, No. 3 (March), P. 393–98. Tired: Mead, Nicole L., Roy F. Baumeister, Francesca Gino, Maurice E. Schweitzer, and Dan Ariely 2009. “Too Tired to Tell the Truth: Self-Control Resource Depletion and Dishonesty.” Journal of Experimental Social Psychology, Vol. 45, No. 3 (May), P. 594–97. Ambiguity: Schweitzer, Maurice E., and Christopher K. Hsee 2006. “Stretching the Truth: Elastic Justification and Motivated Communication of Uncertain Information.” SSRN Scholarly Paper. (Rochester, NY: Social Science Research Network, Oct. 11). Summary of various factors: Ariely (2012).

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