Professional Documents
Culture Documents
2013–2018
Research Highlights | 2013–2018
The articles here were originally published in the Chicago Booth Review, which
publishes research-driven insights on business, policy, and markets. Chicago Booth
Review is a publication of the University of Chicago Booth School of Business.
Read more at http://review.chicagobooth.edu.
When It Makes Sense to Raid Your Why Sharing a Plate Leads to Better
Savings Account Negotiation Outcomes
Booth Faculty: Richard H. Thaler, Booth Faculty: Ayelet Fishbach 23
Abigail Sussman 3
Why Curiosity Gets the Better of Us
Are You Looking at Me? Booth Faculty: Christopher K. Hsee 24
Booth Faculty: Nicholas Epley, Ann L. McGill 4
When Little White Lies Cause Big Hurt
Why Good Things Come to Those Booth Faculty: Emma Levine 25
Who . . . Wait
Booth Faculty: Ayelet Fishbach 11 Try Eating Popcorn with Chopsticks
Booth Faculty: Ed O’Brien 26
Viewing FICO Scores Spurs Better
Financial Habits Why Businesses Should Think Like
Booth Faculty: Abigail Sussman 13 Auctioneers
Booth Faculty: Devin G. Pope 27
What Your Future Self Can Teach You
Booth Faculty: Daniel Bartels, Make Unpleasant Experiences
Oleg Urminsky, Ed O’Brien 14 Go By Faster
Booth Faculty: Anuj K. Shah 28
How to Get Yourself to Skip That
Latte, and Save Money
Booth Faculty: Daniel Bartels, Oleg Urminsky 20 Contact
Amy Boonstra, Director
No, America Is Not More Divided Center for Decision Research
Than Ever Before University of Chicago
Booth Faculty: Marianne Bertrand, Booth School of Business
Emir Kamenica 20 5807 South Woodlawn Avenue
Chicago, Illinois 60637
Tel: 773.702.7307
Convince Teens They’re Rebelling,
Fax: 773.834.9134
and They May Eat Healthily amy.boonstra@chicagobooth.edu
Booth Faculty: Christopher J. Bryan 22
chicagobooth.edu/CDR
About the Center
The Center for Decision Research is devoted to the study of how individuals form
judgments and make decisions. At the forefront of the rapidly developing field of
behavioral science, the Center is part of the University of Chicago Booth School of
Business and is home to researchers who examine the processes by which intuition,
reasoning, and social interaction produce beliefs, judgments, and choices. Understanding
how and why people make decisions has important applications in a range of contexts,
including management, marketing, finance, and public policy.
History
Founded by Hillel Einhorn in 1977, the CDR helped to pioneer the use of science to explain inconsistencies between
actual and theoretically rational human behavior. In the early years, this work centered on decision making, shaking
the foundations of classical economic theory by revealing reliable and unrecognized biases in how individuals under-
stand the choices they face. Rather than simply contest establishment wisdom (advanced, in many cases, by lumi-
naries in other departments of the school), CDR faculty fed off the tension between their new insights and traditional
models. They worked to reconcile and refine seemingly incompatible understandings of human behavior to advance
both the center and their revolutionary research.
Building on these successes in decision-making research, the CDR has since led a broad expansion of the field of
behavioral science. Using insights from numerous disciplines—including psychology, economics, political science,
neuroscience, and sociology—CDR faculty now lead a field that is proving indispensable for understanding human
behavior in finance, marketing, management, health care, politics, charity, and many other domains.
Bernd Wittenbrink, Robert S. Hamada Professor of Ann McGill, Sears Roebuck Professor of General
Behavioral Science Management, Marketing and Behavioral Science
Sendhil Mullainathan, University Professor and
Devin Pope, Professor of Behavioral Science and Robert
Professor of Computation and Behavioral Science
King Steel Faculty Fellow
A. David Nussbaum, Adjunct Associate Professor
of Behavioral Science
Affiliated University of Chicago Faculty
Ed O’Brien, Associate Professor of Behavioral Science
Daniel Bartels, Professor of Marketing
Eric Oliver, Professor of Political Science
Marianne Bertrand, Chris P. Dialynas Distinguished
Service Professor of Economics Jane Risen, Professor of Behavioral Science
Christopher Bryan, Assistant Professor of Behavioral Anuj Shah, Associate Professor of Behavioral Science
Science
Alex Shaw, Assistant Professor of Psychology
Berkeley Dietvorst, Assistant Professor of Marketing
Abigail Sussman, Associate Professor of Marketing
Ayelet Fishbach, Jeffrey Breakenridge Keller Professor of
Thomas Talhelm, Assistant Professor of Behavioral
Behavioral Science and Marketing
Science
Linda Ginzel, Clinical Professor of Managerial Psychology
Oleg Urminsky, Professor of Marketing
Reid Hastie, Ralph and Dorothy Keller Distinguished
George Wu, John P. and Lillian A. Gould Professor
Service Professor of Behavioral Science
of Behavioral Science
Christopher Hsee, Theodore Otte Yntema Professor of
Elena Zinchenko, Adjunct Associate Professor
Behavioral Science and Marketing
of Behavioral Science
Ariel Kalil, Professor, Director of the Center for Human
Potential and Public Policy
Administrative Leadership
Emir Kamenica, Richard O. Ryan Professor of Economics
Amy Boonstra, Director, Center for Decision Research
Boaz Keysar, Professor of Psychology
Rebecca White, Adjunct Faculty, Director
Joshua Klayman, Professor Emeritus of Behavioral of Labs Services
Science
Mark Temelko, Senior Associate Director of
Alex Koch, Assistant Professor of Behavioral Science Communications
Account
Kiev, and thousands participated. “We want people to
understand that simple conversations can create social
change by reducing isolation, improving well-being, and
strengthening communities,” the London group wrote on Luke Wilmshurst
its website. Originally published June 12, 2015
Research by Professor Nicholas Epley and PhD stu-
dent Juliana Schroeder suggests that people would BOOTH FACULTY:
Research Highlights | 3
uses such as paying for college or retirement. The par-
ticipants were most reluctant to raid funds set aside Are You Looking
for children—a finding that held even when that money
wouldn’t be spent on children for many years. at Me?
While opting for high-interest loans might seem irra-
tional, it is consistent with other recognized spending Why companies like to turn products
biases in which consumers treat money as nonfungible, into people
Sussman and O’Brien say. According to research by
Hersh M. Shefrin of Santa Clara University and Chicago Alice G. Walton
Booth’s Richard H. Thaler, people are more likely to Originally published August 27, 2015
spend from current than future income, whereas other
research by Thaler indicates people tend to spend less BOOTH FACULTY:
money from pension and home equity than other assets. Nicholas Epley, Ann L. McGill
The researchers identify a possible solution: automatic
repayment plans. When participants had more confi- It’s fair to say that commuters can be a surly bunch, par-
dence in their ability to replace their savings, they were ticularly in the rain. So it will be interesting to see how
more willing to use savings when needed. they respond if, sometime in the near future, a cab that
resembles a happy Herbie (of the Disney movie The Love
WORKS CITED
Bug) pulls up alongside them. Both Uber and Google
Hersh M. Shefrin and Richard H. Thaler, “The Behavioral Life-
are reportedly testing driverless cars, and Google turned
Cycle Hypothesis,” Economic Inquiry, October 1988.
some loose on the roads of Mountain View, California,
Abigail Sussman and Rourke Liam O’Brien, “Saving for a
and Austin, Texas, this summer. The company designed
Purpose: The Financial Consequences of Protecting Savings,”
the front end of its prototype to look like an innocent,
Working paper, December 2014.
wide-eyed human face.
Richard H. Thaler, “Anomalies: Saving, Fungibility, and Mental
Anthropomorphism—giving human characteristics to
Accounts,” Journal of Economic Perspectives, February 1990.
animals, objects, constellations, and other nonhuman
things—is a natural and ancient human inclination.
Eighteenth-century philosopher David Hume wrote about
a “universal tendency among mankind to conceive all
beings like themselves”—a tendency, he argued, that
stems from an intellectual urge to understand a fright-
ening and erratic existence. All over the world, and
throughout time, people have fashioned gods after peo-
ple—and some have envisioned god-favored heroes in
the constellations. Sailors named storms and hurricanes,
a tradition continued by meteorological organizations. We
see faces in clouds and trees, and attribute to our pets
motivations that we can’t prove.
In the past few decades, thanks to advances in tech-
nology, we have created things that talk, sing, dance on
screen, smile, frown, and exhibit nuanced human expres-
sions. We think of products and brands as other people
with fully formed personalities—as companions, friends,
and relationship partners. When companies develop
anthropomorphized characters, consumers pay attention.
Research Highlights | 5
“These findings suggest that perceiving an agent as hav- students look at automobile print ads in which the cars
ing a mind of its own may not be mere metaphor,” says appeared to be either smiling or frowning. In some
Epley. Our brains respond as if we really are interacting cases, the cars addressed the viewer directly, saying,
with another “mind.” for instance, “Hi! I am Lexus. You may have seen me
The third element in Epley’s theory of anthropomor- around in your city. Lately, I have gotten a face-lift. . . . ”
phism is cognitive and automatic. The only lens we have In other cases, the ad was constructed in the third per-
for viewing the world is human, he says, so we apply that son (“You will now see a picture of a Lexus. You may
complex knowledge base to everything around us. Giving have seen this car around in the city.”). If a car was smil-
certain human traits—such as eyes or a voice—to inani- ing and the ad was written as if the car were a spokes-
mate objects can trigger our idea of what’s human, mak- person, participants liked the car better than if the car
ing it more likely that we’ll anthropomorphize the object. were frowning. The smiling car better fit respondents’
Epley’s latest study, with Waytz and the University of stored framework of knowledge about a spokesperson,
Connecticut’s Joy Heafner, found that it takes only subtle who tends to smile. On the other hand, when the ad was
touches of humanness to persuade us to treat a driver- written in the third person, participants were no more
less car as having a mind. A voice, a name, and a gender likely to see the car as human if it were smiling than
were enough to get riders to see “her” as more than a if it were frowning. “We propose that, when marketers
mindless machine. encourage consumers to anthropomorphize a product,
consumers bring to mind their schema for the type of
How we react to a car’s ‘come hither’ look person suggested, and that the product is evaluated in
Once we see a face in something, what do we think? Do part by how well its features fit that schema,” McGill and
we like it? Feel frightened? It turns out that just as differ- Aggarwal write.
ent human faces evoke different responses, faces given A similar phenomenon occurred when the researchers
to objects do the same. replaced cars with soda bottles having humanlike bod-
Ann L. McGill, Sears Roebuck Professor of General ies. When the team presented an ad describing a group
Management, Marketing, and Behavioral Science at of bottles as a “family line,” participants evaluated the
Chicago Booth, once got stuck in traffic, with an aggres- bottles more positively when the bottles were differently
sive-looking pickup in her rearview mirror. “I found sized—resembling two parents and two kids—than when
myself reacting even more strongly,” she says. “It wasn’t they were all the same size. Finally, when two bottles
just that it was honking and right on my tail, but it were presented as “twins,” participants saw them as
looked really angry—and being a pickup truck, it loomed more human, and liked them better, if the bottles were
large in my rearview mirror.” the same size, rather than different sizes (though they
Soon after, McGill began studying car “faces.” With liked them a little less when the pair was presented as
Pankaj Aggarwal of the University of Toronto, who evil twins rather than good twins).
received his PhD at Chicago Booth, she conducted a sim- Coca-Cola has taken advantage of the human tendency
ple experiment using cars to determine whether the prod- to like products better when they seem more like people.
ucts fulfilled our sense of specific human schema, or our Its carbonated soft-drink sales in the United States rose
idea of what it is to be one kind of human or another. last year for the first time since 2000, after the company
As Google and generations of moviegoers know well, began putting names on its bottles, using the 250 most
features of cars can be used to look like faces. Herbie, popular first names for teens and Millennials. “To see
a 1963 Volkswagen Beetle, had a long career in film. your name on a big brand, it makes it personal,” cus-
Today millions of children are more familiar with Pixar’s tomer Ricardo El Torro told the Wall Street Journal.
animated Cars films, featuring characters such as race- Faces struck the researchers as particularly important.
car Lightning McQueen and the tow truck Mater. They’re critical from an evolutionary perspective, after
In their car study, McGill and Aggarwal test whether all, says McGill. If one of our ancestors were to have mis-
each car seems like a spokesperson. They had college read the expression on a face, or even missed seeing an
Research Highlights | 7
When things talk, we listen which she was apparently a natural.) Iris would say things
We see humans in objects and we respond accordingly— such as, “Hello, I’m Iris. I’m your car’s automated system,”
and, crucially, some of us respond with trust. McGill has and, “A car turned into our lane. I’m going to slow down.”
found that some people might trust a talking gecko, or The people in the third group, who were driven by Iris,
muffin, or M&M’s, more than they would trust a living, rated the car as more intelligent and trustworthy than did
breathing, human spokesperson. people in the first two groups. And when the team pro-
Who are these people? McGill and Northwestern’s gramed an accident into the simulation, people riding in Iris
Maferima Touré-Tillery, who received her PhD at blamed the car, its engineer, and its manufacturer consid-
Chicago Booth, tried to address this question with an erably less than did those who drove themselves. Further,
experiment involving a fictitious brand of dental floss, the riders’ heart rates and startle responses were consid-
which they called Max Floss. The dental-floss con- erably lower in the Iris group, suggesting that when the car
tainer had eyes and a mouth, and in the print ad, “he” seems to have a mind, people are more at ease with it.
addressed the viewer in the first person. In an alternate Epley says these findings are a prime example of how
version, the ad copy was written in the third person. small touches of humanness such as a voice, gender,
The dental floss was still named Max, but it didn’t have and name can elicit our capacity to see humanity in a
human features. machine—to give it a mind. “When you give a non-hu-
It turned out that participants who ranked low man agent the properties that trigger it in other people,
in interpersonal trust to begin with, measured by a that’s when you anthropomorphize things,” says Epley.
questionnaire, responded well to a “talking” box of “We give something a voice—suddenly it has a mind!
dental floss. They were more convinced of the product’s So it’s not hard to do.”
worth when it spoke to them directly than when a person And perhaps not surprisingly, the same thing is true
presented the product’s benefits. People low in trust for actual humans: in Epley’s latest study, he and former
believe other people lack goodwill, so they discounted student Juliana Schroeder had real recruiters or actors
what the person said about the floss. However, the evaluate MBA candidates’ “elevator pitches” about why
talking box didn’t trigger the same guarded response that they should be hired. The real and fake recruiters both
those participants had to human messengers. People responded more positively to the applicants—finding
who were more trusting of other humans, by contrast, them more competent, thoughtful, and intelligent—when
were just as likely to believe the product’s worth they took in the pitches via voice recording rather than
after reading the ad written in the third person. The in writing. This last study may be something to keep in
researchers found similar effects in follow-up studies; mind in our own social interactions: reaching out voice to
for example, in one experiment, a talking lamp described voice, rather than via email, makes you seem a lot more
the benefits of a light bulb. The results suggest the human—and a lot more intelligent.
benefit of anthropomorphism wasn’t tied directly to
the desire to purchase the talking product, but instead Should polar bears speak?
reflected how credible the talking item was in its pitch. A government agency recently contacted McGill to
It may be possible to increase people’s trust of a par- inquire whether it should anthropomorphize mold and
ticular object by anthropomorphizing it. In one study, rot in its advertising campaign to get people to buy flood
Waytz, Heafner, and Epley asked participants to use a insurance. McGill says that because people vary in the
General Motors driving simulator. In some cases, the traits (such as how trusting they are) that make them
study participants in the simulator did the driving them- more or less receptive to anthropomorphism, it’s difficult
selves. In other cases, the car drove the person silently. to give across-the-board advice.
And in a third condition, a car given the name Iris—the In noncorporate settings, objects with humanlike traits
reverse of iPhone’s Siri—drove the participant while could help address climate change. Science shows with
speaking in a soothing female voice. (Epley’s colleague at very little doubt that the earth is warming, yet many
Chicago Booth, Heather Caruso, served as Iris’s voice, for American lawmakers and citizens remain unconvinced.
Research Highlights | 9
says McGill. Adding or subtracting humanness in certain Gráinne M. Fitzsimons, Tanya L. Chartrand, and Gavan J.
situations might actually change our interactions not only Fitzsimons, “Automatic Effects of Brand Exposure on Motivated
Behavior: How Apple Makes You ‘Think Different,’” Journal of
with products, but also with our loved ones, the environ-
Consumer Research, June 2008.
ment, our communities, and even our own bodies.
But when a happy-looking driverless cab pulls up Susan Fournier, “Consumers and Their Brands: Developing
Relationship Theory in Consumer Research,” Journal of Consumer
alongside you sometime soon, chances are it’s OK to hop
Research, March 1998.
in and let it take you where you need to go. If “he” intro-
duces itself to you by name, it will be hard not to trust David Hume, “The Natural History of Religion,” in Four
Dissertations, London: A. Millar in the Strand, 1757.
it, since it will have been given a “mind.” Trusting your
driverless cab is probably not a bad thing; after all, if it’s Sara Kim and Ann L. McGill, “Gaming with Mr. Slot or Gaming
designed by Google or GM, it will likely be a safer driver the Slot Machine? Power, Anthropomorphism, and Risk
Perception,” Journal of Consumer Research, June 2011. Chart
than you.
reprinted with permission from Oxford University Press. Copyright
2011.
WORKS CITED
Pankaj Aggarwal and Ann L. McGill, “Is That Car Smiling at Me? Jan R. Landwehr, Ann L. McGill, and Andreas Herrmann, “It’s
Schema Congruity as a Basis for Evaluating Anthropomorphized Got the Look: The Effect of Friendly and Aggressive ‘Facial’
Products,” Journal of Consumer Research, December 2007. Expressions on Product Liking and Sales,” Journal of Marketing,
May 2011. Chart reprinted with permission from American
, “When Brands Seem Human, Do Humans Act
Marketing Association. Copyright 2011.
Like Brands? Automatic Behavioral Priming Effects of Brand
Anthropomorphism,” Journal of Consumer Research, Agnieszka Piotrowska, “I Married the Eiffel Tower,” Independent,
August 2012. May 25, 2008.
Hee-Kyung Ahn, Hae Joo Kim, and Pankaj Aggarwal, “Helping Juliana Schroeder and Nicholas Epley, “The Sound of Intellect:
Fellow Beings: Anthropomorphized Social Causes and the Role of Speech Reveals a Thoughtful Mind, Increasing a Job Candidate’s
Anticipatory Guilt,” Psychological Science, January 2014. Appeal,” Psychological Science, June 2015.
Paul Ekman, “Facial Expressions and Emotion,” American Maferima Touré-Tillery and Ann L. McGill, “Who or What to
Psychologist, April 1993. Believe: Trust and the Differential Persuasiveness of Human
and Anthropomorphized Messengers,” Journal of Marketing, July
Nicholas Epley, Scott Akalis, Adam Waytz, and John T. Cacioppo,
2015.
“Creating Social Connection through Inferential Reproduction:
Loneliness and Perceived Agency in Gadgets, Gods, and Adam Waytz, Nicholas Epley, and John T. Cacioppo, “Social
Greyhounds,” Psychological Science, February 2008. Cognition Unbound: Insights into Anthropomorphism and
Dehumanization,” Current Directions in Psychological Science,
Nicholas Epley, Adam Waytz, Scott Akalis, and John T. Cacioppo,
February 2010.
“When We Need a Human: Motivational Determinants of
Anthropomorphism,” Social Cognition, Special Issue: Missing Adam Waytz, Joy Heafner, and Nicholas Epley, “The Mind in the
Links in Social Cognition, April 2008. Machine: Anthropomorphism Increases Trust in an Autonomous
Vehicle,” Journal of Experimental Social Psychology, January
Nicholas Epley, Adam Waytz, and John T. Cacioppo, “On
2014.
Seeing Human: A Three-Factor Theory of Anthropomorphism,”
Psychological Review, October 2007. Adam Waytz, Carey K. Morewedge, Nicholas Epley, George
Monteleone, Jia-Hong Gao, and John T. Cacioppo, “Making
, “Who Sees Human? The Stability and Importance of
Sense by Making Sentient: Effectance Motivation Increases
Individual Differences in Anthropomorphism,” Perspectives on
Anthropomorphism,” Journal of Personality and Social Psychology,
Psychological Science, May 2010.
September 2010.
Come to Those kids who spent more time waiting had higher test scores
and healthier body mass–index scores years later.
adviser’s office, the dealership, or during that agonizing, Originally published April 13, 2018
The researchers sorted Sallie Mae student-loan bor- Tatiana Homonoff, Rourke O’Brien, and Abigail Sussman, “Does
Knowing Your FICO Score Change Financial Behavior? Evidence
rowers into four groups. The first was a control group
from a Field Experiment with Student Loan Borrowers,” Working
made up of 10 percent of borrowers, who did not receive paper, February 2018.
an email nudge, though they could continue to access
their FICO score for free on the Sallie Mae website.
The remaining customers received one of three quar-
terly emailed messages. One group was merely told
via email that the quarterly update to their score was
What Your Future Self
available. A second group received an additional mes-
sage explaining how FICO scores affect one’s finances.
Can Teach You
A final group saw a keeping-up-with-the-Joneses-type The ‘future you’ can help you
exhortation that people just like them were taking steps
to manage their financial future. Due to privacy issues,
be wealthier, healthier, and more
individual FICO scores were not included in emails; par- generous in the present
ticipants had to sign in to their Sallie Mae account to get
their score. Alice G. Walton
Nearly a third of Sallie Mae customers who received Originally published December 10, 2015
any of the three email messages in the first year of the
study checked their score at least once, compared to BOOTH FACULTY: Daniel Bartels, Oleg
Urminsky, Ed O’Brien
just one in five in the control group. There was no differ-
ence across the various email message groups.
The nudge also seems to have some beneficial con- Visit Merrill Edge’s Face Retirement website, and you’ll be
sequences, measured one year after the intervention confronted by your future self. The site invites you to take
began. Among participants who received an email a photo with your webcam and input your age. Then facts
reminder, the rate of being at least 30 days late on bill about retirement and savings flash on the screen—“46
payments was 4 percent lower than in the control group. percent of Americans have saved less than $10,000 for
When the researchers looked at the same variable among retirement” reads one—while the program digitally “ages”
emailed participants who were induced to check their your photo, and you are soon staring at a slightly ani-
score as a result of the intervention, the incidence of late mated, nodding, blinking, more wrinkly version of yourself.
payments was 9 percentage points lower than among Merrill Edge is betting that the statistics alone won’t scare
participants who did not receive emails. The average you into saving, but being confronted by an older version
FICO score was 8 points higher for the emailed cohort. of yourself will. “That’s not a stranger you’re saving for,”
The researchers write that “it does appear that viewing reads the site, “it’s the future you.”
one’s FICO Score drives financial behaviors which, on In a commercial put out by Prudential, a cartoon version
net, improve the creditworthiness of individuals.” of a man sits side by side with an older version of himself.
The efficacy of the emails seems to stem from com- “This is you,” says the spokesman. “This is you in 40
batting overoptimism. In a separate survey that included years . . . you like you, right?” It continues, “One-third of you
3,500 Sallie Mae customers, individuals were asked to aren’t saving enough for the older you. But why is that?”
Next came the negotiation scenario, in which one Originally published August 31, 2016
Try Eating Popcorn two other groups’ pleasure declined with each sip.
The results could apply to almost any part of life, they
with Chopsticks write, adding that rethinking our relationship with pos-
sessions could positively affect the environment. Instead
of dumping your phone, furniture, or even spouse for a
Alice G. Walton newer model, consider first changing how you experience
Originally published September 13, 2018 them. “Perhaps the ‘magic’ of first-time encounters,” the
researchers conclude, “is felt not only when experiencing
BOOTH FACULTY: Ed O’Brien
new things but when experiencing new perspectives on
the things you already have.”
People leave jobs, cities, or even lovers when the thrill
wears off. But there may be an antidote, according to WORKS CITED
Chicago Booth’s Ed O’Brien and Ohio State University’s Ed O’Brien and Robert W. Smith, “Unconventional Consumption
Robert W. Smith: injecting a little novelty into how you Methods and Enjoying Things Consumed: Recapturing the ‘First-
Time’ Experience,”Personality and Social Psychology Bulletin,
experience the familiar, rather than acquiring new things
June 2018.
altogether, can reignite pleasure, they find. This may
Should Think Like between auctioneers was consistent over time and across
metrics, as well as whether this discrepancy was corrob-
residual price, and a 6.1-second increase in speed on Auction Outcomes,” Working paper, December 2013.
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Kanto Local Finance Bureau (Financial Instruments Firm) No. 382. PIMCO Japan Ltd is a member of Japan Investment Advisers Association and The Investment
Trusts Association, Japan. Investment management products and services offered by PIMCO Japan Ltd are offered only to persons within its respective jurisdiction,
and are not available to persons where provision of such products or services is unauthorized. Valuations of assets will fluctuate based upon prices of securities
and values of derivative transactions in the portfolio, market conditions, interest rates and credit risk, among others. Investments in foreign currency denominated
assets will be affected by foreign exchange rates. There is no guarantee that the principal amount of the investment will be preserved, or that a certain return will
be realized; the investment could suffer a loss. All profits and losses incur to the investor. The amounts, maximum amounts and calculation methodologies of each
type of fee and expense and their total amounts will vary depending on the investment strategy, the status of investment performance, period of management and
outstanding balance of assets and thus such fees and expenses cannot be set forth herein.| PIMCO Taiwan Limited is managed and operated independently. The
reference number of business license of the company approved by the competent authority is (107) FSC SICE Reg. No.001. 40F., No.68, Sec. 5, Zhongxiao E.
Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.), Tel: +886 (02) 8729-5500. | PIMCO Canada Corp. (199 Bay Street, Suite 2050, Commerce Court Station, P.O.
Box 363, Toronto, ON, M5L 1G2) services and products may only be available in certain provinces or territories of Canada and only through dealers authorized for
that purpose. | PIMCO Latin America Av. Brigadeiro Faria Lima 3477, Torre A, 5° andar São Paulo, Brazil 04538-133. | No part of this publication may be repro-
duced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P.
in the United States and throughout the world. This material is published by Chicago Booth Review, a publication of the University of the Chicago Booth School of
Business. Date of original publication January 2019.
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About the Center for Decision Research
The Center for Decision Research is devoted to the study of how
individuals form judgments and make decisions. At the forefront
of the rapidly developing field of behavioral science, the Center
is part of the University of Chicago Booth School of Business
and is home to researchers who examine the processes by
which intuition, reasoning, and social interaction produce beliefs,
judgments, and choices.