The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s Afores
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1 décembre 2018
- handle: 10670/1.bgprfb
Ce document est lié à :
10.18381/eq.v15i2.7126
info:eu-repo/semantics/openAccess
Mots-clés
Halo effect retirement private knowledge AFORE D82 G14 G41 H55 J26Sujets proches
Older people--Retirement Superannuation Termination of employment Pattern ModelCiter ce document
Luis Raúl Rodríguez Reyes, « The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s Afores », EconoQuantum, ID : 10670/1.bgprfb
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Résumé
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.