The 1/N Rule revisited: heterogeneity in the naïve diversification bias

Daniel Fernandes*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)


This paper examines the naïve diversification bias, the tendency of consumers to diversify their investments beyond what is justifiable on economically rational grounds (Benartzi & Thaler, 2001). The naïve diversification bias is replicated across different samples using a within-participant manipulation of portfolio options. Only differences in focus on intuition predicted this bias. The more investors use intuitive judgments, the more likely they are to display the naïve diversification bias.
Original languageEnglish
Pages (from-to)310-313
Number of pages4
JournalInternational Journal of Research in Marketing
Issue number3
Publication statusPublished - Sept 2013
Externally publishedYes


  • Financial decision making
  • Heuristics
  • Intuitive judgments
  • Naïve diversification bias
  • Variety-seeking


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