Keep pulling the thread on Richard Thaler & Alex Imas.
Recent research indicates that default settings in 401(k) plans account for approximately $2 trillion in retirement savings that might have otherwise remained in cash.
The Pension Protection Act of 2006 enabled companies to use automatic enrollment, automatic escalation (Save More Tomorrow), and invest in prudent default funds like target-date funds.
Enron compounded its corporate failure by investing its employees' 401(k) funds into Enron stock, causing them to lose both their jobs and retirement savings simultaneously.
Despite a "reproducibility crisis" in other social sciences, the core anomalies of behavioral economics have been shown to be highly robust and reproducible in modern replications.
In the NFL draft, the probability that a player picked at a certain position is better than the very next player picked at the same position is only 53%.
A study of institutional investors found that their stock sales underperformed a random selling strategy from their own portfolio by 100 to 200 basis points.
The selling decisions of institutional investors exhibit the same behavioral biases found in lab experiments, whereas their buying decisions appear disciplined and do not show evidence of heuristics.
An estimated 40% of American workers are employed by firms that do not offer a retirement savings plan.
An early study of 401(k) plans found that half of the employees at a company with a matching contribution program did not join in their first year of eligibility.
The "disposition effect," a tendency for investors to sell winning stocks too early and hold onto losing stocks for too long, was first documented by Hersh Shefrin and Meir Statman in 1985 and has been replicated globally.
A major principle in behavioral finance is "limited attention," where both retail and institutional investors are more likely to buy stocks that are prominently covered in the news.
Sweden represents an extreme case of home country bias, as its citizens invested heavily in Swedish stocks despite Sweden accounting for only 1% of world GDP.