To risk or not to risk? improving financial risk-Taking of older adults by online social information

Jason Chen Zhao, Wai Tat Fu, Hanzhe Zhang, Shengdong Zhao, Henry Been Lirn Duh

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Increasing number of older adults manage their retirement savings online. A crucial element of better management is to take rational financial risk - to strike a reasonable balance between expected gain and loss under uncertainty. With the emergence of Web 2.0 technologies, social trading networks can help individuals make better financial decisions by providing information about others' actions. It is, however, unclear whether these resources is beneficial to older adult's own financial decisions, especially because older adults are vulnerable to poor risk management. To address this question, we devise an experiment that improves upon an existing experimental economic task. We find that both peer information (detailed choices by a few individuals) and majority information (aggregated choices of the crowd) help older adults make more risk-neutral decisions. Furthermore, the combination of peer and majority information corrects more mistakes of more riskaverse older adults.

Original languageEnglish (US)
Title of host publicationCSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing
PublisherAssociation for Computing Machinery, Inc
Pages95-104
Number of pages10
ISBN (Electronic)9781450329224
DOIs
StatePublished - Feb 28 2015
Event18th ACM International Conference on Computer-Supported Cooperative Work and Social Computing, CSCW 2015 - BC, Canada
Duration: Mar 14 2015Mar 18 2015

Publication series

NameCSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing

Other

Other18th ACM International Conference on Computer-Supported Cooperative Work and Social Computing, CSCW 2015
CountryCanada
CityBC
Period3/14/153/18/15

Keywords

  • Decision-Making
  • Experience-Based Task
  • Older Adults
  • Risk-Taking
  • Social Information

ASJC Scopus subject areas

  • Computer Networks and Communications

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  • Cite this

    Zhao, J. C., Fu, W. T., Zhang, H., Zhao, S., & Duh, H. B. L. (2015). To risk or not to risk? improving financial risk-Taking of older adults by online social information. In CSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing (pp. 95-104). (CSCW 2015 - Proceedings of the 2015 ACM International Conference on Computer-Supported Cooperative Work and Social Computing). Association for Computing Machinery, Inc. https://doi.org/10.1145/2675133.2685033