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This paper offers an ambiguity-based interpretation of variance premium - the difference between risk-neutral and objective expectations of market return variance - as a compounding effect of both belief distortion and variance differential regarding the uncertain economic regimes. Our approach...
Persistent link: https://www.econbiz.de/10011939896
&H—to explore the determinants of decision time. C&H categorized individual subjects as being of one of four types (of decision … at the decision times of the different types. We take as given the categorization identified by C&H, and explore whether … the classification can explain the decision times of the subjects. We investigate whether and why different types take a …
Persistent link: https://www.econbiz.de/10014502514