Just How Rational Are Investors? Laboratory and Field Evidence

  • Torstila, Sami (Principal investigator)
  • Palosaari, Esa (Project Member)

Project Details


Individual rationality is an assumption of most theories in financial economics. Also, when making policy and regulatory decisions concerning individual financial behavior, policy makers will usually assume that individuals react rationally. However, empirical research on the financial decisions of individuals has shown that this assumption often does not to hold. The objective of this project is to increase understanding about the determinants of individual financial decisions using both laboratory and field evidence. Such understanding helps solidify the foundation of economic theory and policymaking. We seek funding from the Academy of Finland for 2015-2019 to partially fund 1) a lab manager position for the newly established Aalto Choice Tank; 2) a database and hardware specialist position for processing data-intensive behavioral finance field evidence; and 3) part of the database and hardware costs necessary for the project.
Effective start/end date01/09/201531/08/2019

Collaborative partners

  • Aalto University (lead)
  • SA: Research funding (other) (Project partner)
  • SA: Research funding (other) (Project partner)
  • Suomen Akatemia (Project partner)


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