@article {Slifka83, author = {David Slifka}, title = {Improving Investment Behavior with Pre-Commitment}, volume = {22}, number = {1}, pages = {83--87}, year = {2013}, doi = {10.3905/joi.2013.22.1.083}, publisher = {Institutional Investor Journals Umbrella}, abstract = {In aggregate, investors succumb to human temptation to buy high and sell low. Academic research on pre-commitment provides a framework for investors to support contrarian behavior and reinforce defenses against poor investment practice such as herding. Examples of such reinforcements include psychological pre-commitment, such as priming investors with their own beliefs prior to making a decision, or behavioral pre-commitment, such as requiring a higher voting threshold to make herding decisions. An investment committee can use these tools in the present to nudge its future behavior in a desired contrarian direction.TOPICS: Portfolio theory, legal/regulatory/public policy}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/22/1/83}, eprint = {https://joi.pm-research.com/content/22/1/83.full.pdf}, journal = {The Journal of Investing} }