Kliger, Doron; Levy, Ori - In: Journal of Behavioral and Experimental Economics … 39 (2010) 1, pp. 24-29
This paper explores systematic distortions of subjective probabilities by overconfident investors. In agreement with many non-expected utility theories, our devised setup acknowledges nonlinear weighting of physical probabilities by both rational and overconfident investors. Overconfidence -...