Lee, Byunghwan; OBrien, John; Sivaramakrishnan, K. - Carnegie Mellon University, Tepper School of Business - 2004
Evidence suggests that long-term EPS growth forecasts of financial analysts are by and large optimistic. In particular, we test whether the Availability Heuristic (Tversky and Kahneman 1973) is descriptive of analysts’ forecasting behavior, and whether this heuristic can help explain the...
