dc.contributor.author | Carlin, Bruce Ian | |
dc.contributor.author | Manso, Gustavo | |
dc.date.accessioned | 2011-07-07T21:00:19Z | |
dc.date.available | 2011-07-07T21:00:19Z | |
dc.date.issued | 2010-09 | |
dc.date.submitted | 2010-01 | |
dc.identifier.issn | 0893-9454 | |
dc.identifier.issn | 1465-7368 | |
dc.identifier.uri | http://hdl.handle.net/1721.1/64773 | |
dc.description.abstract | Investor sophistication has lagged behind the growing complexity of
retail financial markets. To explore this, we develop a dynamic model
to study the interaction between obfuscation and investor sophistica-
tion in mutual fund markets. Taking into account different learning
mechanisms within the investor population, we characterize the op-
timal timing of obfuscation for financial institutions who offer retail
products. We show that educational initiatives that are directed to fa-
cilitate learning by investors may induce providers to increase wasteful
obfuscation, further disorienting investors and decreasing overall wel-
fare. Obfuscation decreases with competition among firms, since the
information rents from obfuscation dissipate as each institution attracts
a smaller market share. | en_US |
dc.language.iso | en_US | |
dc.publisher | Oxford University Press for the Society for Financial Studies | en_US |
dc.relation.isversionof | http://dx.doi.org/10.1093/rfs/hhq070 | en_US |
dc.rights | Creative Commons Attribution-Noncommercial-Share Alike 3.0 | en_US |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-sa/3.0/ | en_US |
dc.source | MIT web domain | en_US |
dc.title | Obfuscation, Learning, and the Evolution of Investor Sophistication | en_US |
dc.type | Article | en_US |
dc.identifier.citation | Carlin, Bruce Ian, and Gustavo Manso. “Obfuscation, Learning, and the Evolution of Investor Sophistication.” Review of Financial Studies 24.3 (2011) : 754 -785. | en_US |
dc.contributor.department | Sloan School of Management | en_US |
dc.contributor.approver | Manso, Gustavo | |
dc.contributor.mitauthor | Manso, Gustavo | |
dc.relation.journal | Review of Financial Studies | en_US |
dc.eprint.version | Author's final manuscript | en_US |
dc.type.uri | http://purl.org/eprint/type/JournalArticle | en_US |
eprint.status | http://purl.org/eprint/status/PeerReviewed | en_US |
dspace.orderedauthors | Carlin, B. I.; Manso, G. | en |
mit.license | OPEN_ACCESS_POLICY | en_US |
mit.metadata.status | Complete | |