Take the money: Why we make better financial decisions for strangers than family
This one should not really surprise anyone and is essentially the logic behind my recent test question of "what is the role of a financial planner in the face of investors prone to behavioral biases".
This one should not really surprise anyone and is essentially the logic behind my recent test question of "what is the role of a financial planner in the face of investors prone to behavioral biases".
"They found participants were more likely to select a smaller immediate reward than delay for a larger pay-off both for themselves and for beneficiaries they were more closely related to. The decisions got progressively less impulsive and steadily more rational as the family connection became more distant. The most rational economic choices were made on behalf of complete strangers.
The study, published in the online journal PLOS ONE, is the first to show that decisions taken on behalf of others are affected systematically by the closeness of the relationship...."
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