Why would limited information about unfamiliar assets be an explanation for familiarity bias? What evidence supports this

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Why would limited information about unfamiliar assets be an explanation for familiarity bias? What evidence supports this theory? Is there any reason to doubt asymmetric information as the key driver of familiarity bias?

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Behavioral Finance

ISBN: 9780190868741

1st Edition

Authors: H. Kent Baker, Greg Filbeck, John R. Nofsinger

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Question Posted: Feb 23, 2024 04:00 AM

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Why would limited information about unfamiliar assets be an explanation for familiarity bias? What evidence supports this

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If investors cannot cheaply acquire information about unfamiliar assets they will be less likely to purchase these assets Investors theoretically use ...View the full answer

Behavioral Finance

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