This pattern suggests that, while individual judgments may be biased, market mechanisms can partially alleviate such biases.

However, when subjects are explicitly asked to compare the investment of managers, strong gender stereotypes emerge. Most expect male managers to take on more risk, and for the price per share to be higher under male managers.

Our results suggest that: (i) male and female managers make similar choices, (ii) shareholder beliefs about the managers' choices are generally accurate, and (iii) market prices do not differ.