Literature DB >> 29861789

Heaping at Round Numbers on Financial Questions: The Role of Satisficing.

Michael Gideon1, Brooke Helppie-McFall2, Joanne W Hsu3.   

Abstract

Survey responses to quantitative financial questions frequently display strong patterns of heaping at round numbers. This paper uses two studies to examine variation in rounding across questions and by individual characteristics. Rounding was more common for respondents low in ability, for respondents low in motivation, and for more difficult questions, all consistent with theories of satisficing. Questions that require more difficult information retrieval and integration of information exhibit more heaping. The use of records, which lowers task difficulty, reduces rounding as well. Higher episodic memory is associated with less rounding, and standard measures of motivation are negatively associated with rounding. These relationships, along with the fact that longer response latencies are associated with less rounding, all support the idea that rounding is a manifestation of satisficing on open-ended financial questions. Rounding patterns also appear remarkably similar across the two studies, despite being fielded in different modes and employing different question order and wording.

Entities:  

Year:  2017        PMID: 29861789      PMCID: PMC5976260          DOI: 10.18148/srm/2017.v11i2.6782

Source DB:  PubMed          Journal:  Surv Res Methods        ISSN: 1864-3361


  6 in total

1.  The efficient assessment of need for cognition.

Authors:  J T Cacioppo; R E Petty; C F Kao
Journal:  J Pers Assess       Date:  1984-06

2.  Rounding Probabilistic Expectations in Surveys.

Authors:  Charles F Manski; Francesca Molinari
Journal:  J Bus Econ Stat       Date:  2010-04-01       Impact factor: 6.565

3.  Who are the people reluctant to participate in research? Personality correlates of four different types of nonresponse as inferred from self- and observer ratings.

Authors:  Bernd Marcus; Astrid Schütz
Journal:  J Pers       Date:  2005-08

4.  Modeling heaping in self-reported cigarette counts.

Authors:  Hao Wang; Daniel F Heitjan
Journal:  Stat Med       Date:  2008-08-30       Impact factor: 2.373

5.  ENCOURAGING RECORD USE FOR FINANCIAL ASSET QUESTIONS IN AWEB SURVEY.

Authors:  Mick P Couper; Mary Beth Ofstedal; Sunghee Lee
Journal:  J Surv Stat Methodol       Date:  2013-11

6.  Aging and Strategic Learning: The Impact of Spousal Incentives on Financial Literacy.

Authors:  Joanne W Hsu
Journal:  J Hum Resour       Date:  2016
  6 in total

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