Advice availability and gender differences in risky decision making: A study of online retirement planning

Clayton Arlen Looney, Robin S. Poston, Asli Yagmur Akbulut

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

Online retirement planning systems are intended to help individual investors accumulate sufficient savings to support comfortable retirement lifestyles. Although it would seem intuitive that decision makers would choose investment alternatives that provide the highest payoffs over time, individuals tend to construct overly conservative portfolios that yield relatively meager returns. In this study, we explore whether a Web-based decision support system (DSS) that offers advice can enhance decision making by increasing investors' willingness to take calculated risks. Because women tend to be more risk averse when considering financial matters and interact with technologies differently than men, such a DSS might prove especially useful for female investors. A field experiment using retirement plan participants demonstrates that building advice into a DSS helps investors overcome a tendency to hold conservative portfolios. Advice availability and gender interacted such that risk taking is lowest when the DSS fails to provide advice to female decision makers.

Original languageEnglish
Title of host publicationProceedings of the 40th Annual Hawaii International Conference on System Sciences 2007, HICSS'07
DOIs
StatePublished - 2007
Event40th Annual Hawaii International Conference on System Sciences 2007, HICSS'07 - Big Island, HI, United States
Duration: Jan 3 2007Jan 6 2007

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
ISSN (Print)1530-1605

Conference

Conference40th Annual Hawaii International Conference on System Sciences 2007, HICSS'07
Country/TerritoryUnited States
CityBig Island, HI
Period01/3/0701/6/07

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