@article {228501,
	title = {Money Doctors},
	journal = {Journal of Finance},
	volume = {70},
	number = {1},
	year = {2015},
	pages = {91-114},
	abstract = {We present a new model of investors delegating portfolio management to professionals\&nbsp;based on trust. Trust in the manager reduces an investor{\textquoteright}s perception of the riskiness\&nbsp;of a given investment, and allows managers to charge fees. Money managers compete\&nbsp;for investor funds by setting fees, but because of trust, fees do not fall to costs. In\&nbsp;equilibrium, fees are higher for assets with higher expected return, managers on\&nbsp;average under perform the market net of fees, but investors nevertheless prefer to\&nbsp;hire managers to investing on their own. When investors hold biased expectations,\&nbsp;trust causes managers to pander to investor beliefs.},
	url = {http://authorservices.wiley.com/bauthor/onlineLibraryTPS.asp?DOI=10.1111/jofi.12188\&ArticleID=1342396},
	author = {Nicola Gennaioli and Andrei Shleifer and Robert Vishny}
}
