-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in … actions that contradict their high quality signals they herd more extensively than predicted by Bayes-rational herding …-Bayesian updating and informational misinferences are the two channels that drive excessive herding, while the strong (resp. mild …

We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute … asset, the other with two risky assets. Overconfidence increases (i) with the absolute deviation from optimal choices, (ii …

psychological channels underlying such a bias is scarce. We present a laboratory experiment designed to investigate the sunk cost …Evidence from hypothetical scenarios strongly suggests the existence of a sunk cost bias, the tendency to ‘throw good … bias and to test some prominent psychological mechanisms. Inspired by the hypothetical scenarios, we use a two …

overconfidence. We find experimental evidence that individuals update beliefs about their own investment ability based on realized … disposition effect leads to overconfidence and examine model implications for investors' trading behavior and expected profit. …

We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 …

acting on them. We implement the first experiment that is able to address a potential causal relationship between self …

withdrew money one month prior to the events. Thedegree of herding among funds is statistically significant, but moderate.Herding …

We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment …