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Overconfidence in investment decisions : an experimental approach
Dittrich, Dennis; Güth, Werner; Maciejovsky, Boris - 2001
We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence...
Persistent link: https://www.econbiz.de/10011408444
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Does everyone use probabilities? : intuitive and rational decisions about stockholding
Binswanger, Johannes; Salm, Martin - 2013
to a better understanding of the role of cognitive skills in decision making under uncertainty. -- subjective … expectations ; probabilities ; dual system decision making ; cognitive skills ; cognitive economics …
Persistent link: https://www.econbiz.de/10009721396
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Anchoring in financial decision-making : evidence from the field
Jetter, Michael; Walker, Jay K. - 2016
anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue … in their wagering decision, even though there exists no rational reason to do so. More than half of all wagers occur … manifests itself among college students. Overall, our findings suggest anchoring plays a substantial role in financial decision …
Persistent link: https://www.econbiz.de/10011526727
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Stochastic choice and preference reversals
Alós-Ferrer, Carlos; Buckenmaier, Johannes; Garagnani, … - 2021 - Revised version
Preferences over risky alternatives can be elicited by different methods, including direct pairwise choices and willingness-to-accept valuations. The results are frequently at odds, casting doubts on the foundations of economics. We develop a stochastic choice model predicting when...
Persistent link: https://www.econbiz.de/10012604712
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Are behavioral biases stable across markets and prevalent across individuals? : evidence from individual betting choices
Andrikogiannopoulou, Angie; Papakonstantinou, Filippos - 2014
We use novel data on individual activity in a sports betting market to study the effect of past performance sequences on individual behavior in a real market. The revelation of fundamental values in this market enables us to disentangle whether behavior is caused by sentiment or by superior...
Persistent link: https://www.econbiz.de/10010338735
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Barriers to household risk management : evidence from India
Cole, Shawn; Giné, Xavier; Tobacman, Jeremy; Topalova, … - 2009
consistent with household self-reports. Several experiments find that trust plays an important role in the decision to purchase …
Persistent link: https://www.econbiz.de/10003864577
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A behavioral economic approach to multiple job holdings with leisure
Hlouskova, Jaroslava; Tsigaris, Panagiotis Demetrios - 2020
Financial constraints or economic needs, career development, psychological satisfaction as well as demographic and situational factors cause workers to seek more than one job while enjoying leisure time. In this paper we examine how a worker with prospect theory type of preferences allocates her...
Persistent link: https://www.econbiz.de/10012286985
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Information characteristics and errors in expectations : experimental evidence
Antoniou, Constantinos; Harrison, Glenn W.; Igel Lau, Morten - 2015
We design an experiment to test the hypothesis that, in violation of Bayes Rule, some people respond more forcefully to the strength of information than to its weight. We provide incentives to motivate effort, use naturally occurring information, and control for risk attitude. We find that the...
Persistent link: https://www.econbiz.de/10011347344
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Biases of professional exchange rate forecasts : psychological explanations and an experimentally based comparison to novices
Leitner, Johannes; Schmidt, Robert; Bofinger, Peter - 2003
The empirical performance of macroeconomic exchange rate models is more than disappointing. This dismal result is also reflected in the forecasting capabilities of professional analysts: all in all, analysts are not in a position to beat native random walk forecasts. The root for this deficient...
Persistent link: https://www.econbiz.de/10010498976
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Under risk, over time, regarding other people : language and rationality within three dimensions
Jullien, Dorian - 2018
This paper conducts a systematic comparison of behavioral economics’s challenges to the standard accounts of economic behaviors within three dimensions: under risk, over time and regarding other people. A new perspective on two underlying methodological issues, i.e., interdisciplinarity and...
Persistent link: https://www.econbiz.de/10011809698