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    Why did the bankers behave so badly?

    Sabourian, H. and Sibert, Anne (2011) Why did the bankers behave so badly? Working Paper. Birkbeck, University of London, London, UK.

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    Abstract

    It is widely believed that bankers played an important role in causing the financial crisis that began in August 2007. In this paper we demonstrate that the compensation system in the financial services industry which rewards perceived talents, rather than long-term performance, leads rational bankers to exhibit belief persistence, overconfidence and confirmation bias.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: JEL classification: D81, D82, D83, G21
    Keyword(s) / Subject(s): conformation bias, belief persistence, overconfidence, signalling, financial crisis
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Depositing User: Sarah Hall
    Date Deposited: 06 May 2014 16:20
    Last Modified: 30 Jul 2019 15:40
    URI: http://eprints.bbk.ac.uk/id/eprint/9683

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