Showing 1 - 10 of 112,147
-neutrality and pessimism (optimism). This paper reports data from a controlled bargaining experiment where risk preferences and … optimism dominate those of risk-aversion. Optimistic bargainers are significantly more likely to dispute and have aggressive … increased settlement rates are more likely achieved by minimizing impasse uncertainty (to limit the potential for optimism …
Persistent link: https://www.econbiz.de/10005093971
An experiment is designed to test if individuals show (unrealistic) optimism when determining their subjective …
Persistent link: https://www.econbiz.de/10005645453
This paper explores how an individual can deceive herself in order to acquire a more favorable self-view. I present a theoretical model and a laboratory experiment in which each subject's donation to a charity gets transformed into an ambiguous lottery, i.e., a lottery where the winning...
Persistent link: https://www.econbiz.de/10012825635
case. We show that in an insurance context, being insured against losses that may be incurred in a real-effort task changes … subjects' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of … uninsured subjects are underconfident while those that obtain insurance have well-calibrated beliefs. Our results suggest that …
Persistent link: https://www.econbiz.de/10011812974
case. We show that in an insurance context, being insured against losses that may be incurred in a real-effort task changes … subjects' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of … uninsured subjects are underconfident while those that obtain insurance have well-calibrated beliefs. Our results suggest that …
Persistent link: https://www.econbiz.de/10011899247
dataset (180,814 responses) that allows us to create a good measure of entrepreneurial optimism. Our measure is based on the … optimism because they are completely uncorrelated with the individual’s own life or work situation (which is not optimism) and … conditions. Our data highlight the importance of measuring optimism correctly. About half of the survey respondents differ in …
Persistent link: https://www.econbiz.de/10010247380
We experimentally investigate how price expectations are formed in a large asset market where subjects' only task is to forecast the future price of a risky asset. The realized prices depend on these expectations. We observe small (6 participants) and large markets (about 100 participants). In...
Persistent link: https://www.econbiz.de/10011979625
Behavioral and experimental literature on financial instability focuses on either subjective price expectations (Learning-to-Forecast experiments) or individual trading (Learning-to-Optimize experiments). Bao et al. (2017) have shown that subjects have problems with both tasks. In this paper, I...
Persistent link: https://www.econbiz.de/10011956452
Models with heterogeneous interacting agents explain macro phenomena through interactions at the micro level. We propose genetic algorithms as a model for individual expectations to explain aggregate market phenomena. The model explains all stylized facts observed in aggregate price fluctuations...
Persistent link: https://www.econbiz.de/10003777257
Behavioral and experimental literature on financial instability focuses on either subjective price expectations (Learning-to-Forecast experiments) or individual trading (Learning-to-Optimize experiments). Bao et al. (2018) have shown that subjects have problems with both tasks. In this paper, I...
Persistent link: https://www.econbiz.de/10012894616