The halo effect, private knowledge and retirement fund choice: A theoretical model for the case of México’s Afore
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2018
- handle: 10670/1.oyvvc9
- 1870-6622
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EconoQuantum
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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 Afore », EconoQuantum, ID : 10670/1.oyvvc9
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"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."