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Price dynamics and trader overconfidence

Ahrens, Steffen; Bosch-Rosa, Ciril; Roulund, Rasmus Pank - 2019

Overconfidence is one of the most important biases in financial markets and commonly associated with excessive trading and asset market bubbles. So far, most of the finance literature takes overconfidence as a given, "static" personality trait. In this paper we introduce a novel experimental...

Persistent link: https://www.econbiz.de/10012034133

Unleashing animal spirits : self-control and overpricing in experimental asset markets

Kocher, Martin; Lucks, Konstantin; Schindler, David - 2018

capacity to override or inhibit undesired impulses that may drive prices. We implement the first experiment to address the …

Persistent link: https://www.econbiz.de/10011899248

Contagious herding and endogenous network formation in financial networks

Georg, Co-Pierre - 2014

When banks choose similar investment strategies, the financial system becomes vulnerable to common shocks. Banks decide about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed from observing the actions of peers. When the social...

Persistent link: https://www.econbiz.de/10010405430

Common information-processing irrationality as trade creator

Klishchuk, Bogdan - 2020

We show that a common (identical across investors) irrationality in information processing can be enough to create nontrivial trade, using one of standard partial-equilibrium environments. We can attribute this trade to their common irrationality because we strip the investors and their...

Persistent link: https://www.econbiz.de/10012266529

Optimal trade execution under endogenous order flow

Chen, Ying; Hoang Hai Tran; Horst, Ulrich - 2023

We consider an optimal liquidation model in which an investor is required to execute meta-orders during intraday trading periods, and his trading activity triggers child orders and endogenously affects future order flow, both instantaneously and permanently. Under the assumptions of risk...

Persistent link: https://www.econbiz.de/10014476807

What moves households' expectations during a crisis? : evidence from a randomized information experiment

Metiu, Norbert; Stockerl, Valentin - 2024

Using a randomized information experiment embedded in a representative survey, we study households' economic …

Persistent link: https://www.econbiz.de/10015205429

Is "I don't know" a signal of lack of financial knowledge? : some preliminary findings

Endo, Hideki; Chinen, Kenichiro - 2021

Persistent link: https://www.econbiz.de/10014302595

Herding of institutional traders : new evidence from daily data

Kremer, Stephanie - 2010

This paper sheds new light on herding of institutional investors by using a unique database that identifies every … transaction made by financial institutions in the German stock market. First, the analysis reveals that herding behavior of … previous studies overestimate herding. Third, our results suggest that herding by large financial institutions mainly results …

Persistent link: https://www.econbiz.de/10008665444

Beyond value : on the role of symmetry in demand for information

Llorente-Saguer, Aniol; Oliveros, Santiago; Zultan, Ro'i - 2024

Persistent link: https://www.econbiz.de/10015055869

Feedback effects and rational mispricing in markets

Choo, Lawrence; Kaplan, Todd R.; Zultan, Ro'i - 2025

Persistent link: https://www.econbiz.de/10015386511