Beshears, John; Choi, James J.; Fuster, Andreas; … - In: American Economic Review 103 (2013) 3, pp. 570-74
Do laboratory subjects correctly perceive the dynamics of a mean-reverting time series? In our experiment, subjects receive historical data and make forecasts at different horizons. The time series process that we use features short-run momentum and long-run partial mean reversion. Half of the...