PT - JOURNAL ARTICLE AU - David Slifka TI - Improving Investment Behavior with Pre-Commitment AID - 10.3905/joi.2013.22.1.083 DP - 2013 Feb 28 TA - The Journal of Investing PG - 83--87 VI - 22 IP - 1 4099 - https://pm-research.com/content/22/1/83.short 4100 - https://pm-research.com/content/22/1/83.full AB - 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