We investigate the emergence of momentum and reversal anomalies in a general equilibrium model with complete markets and cognitively biased agents, accounting for the presence of representativeness heuristic, conservatism, and anchoring and adjusting in their beliefs. We characterize anomalies...

Online ratings play an important role in many markets. However, how fast they can reveal seller types remains unclear. To study this question, we propose a new model in which a buyer learns about the seller’s type from previous ratings and her own experience and rates the seller if she learns...

We replicate and extend two studies on the dynamics of overconfidence among financial professionals. Using 20 years of data from the ZEW Financial Market Survey with over 40,000 individual forecasts of confidence intervals, we document that participants are overprecise during the entire time...