Behavioral Impediments to Valuing Annuities: Evidence on the Effects of Complexity and Choice Bracketing
National Bureau of Economic Research, 2017.
This paper examines two behavioral factors that diminish people’s ability to value a lifetime income stream or annuity, drawing on a survey of about 4,000 adults in a U.S. nationally representative sample. By experimentally varying the degree of complexity, we provide the first causal evidence that increasing the complexity of the annuity...More
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