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Beliefs about the stock market and investment choices : evidence from a field experiment

Laudenbach, Christine; Weber, Annika; Wohlfart, Johannes - 2021

We survey retail investors at an online bank to study beliefs about the autocorrelation of aggregate stock returns, and how these beliefs shape investment decisions measured in administrative account data. Individuals' beliefs exhibit substantial heterogeneity and predict trading responses to...

Persistent link: https://www.econbiz.de/10012669739

Beliefs about the stock market and investment choices: evidence from a field experiment

Laudenbach, Christine; Weber, Annika; Wohlfart, Johannes - 2021

Persistent link: https://www.econbiz.de/10012799463

Anxiety, overconfidence, and excessive risk taking

Eisenbach, Thomas M.; Schmalz, Martin C. - 2015

We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more risk-averse to imminent than to distant...

Persistent link: https://www.econbiz.de/10010482950

Dynamic decision making under ambiguity : a portfolio choice experiment

Georgalos, Konstantinos - 2016

Persistent link: https://www.econbiz.de/10012176709

Audi alteram partem : an experiment on selective exposure to information

Montanari, Giovanni; Nunnari, Salvatore - 2023

informed on the state, they report it truthfully; when uninformed, they report their favorite state. A Bayesian decision maker …

Persistent link: https://www.econbiz.de/10014383694

On the evolutionary stability of the sentiment investor

Antico, Andrea; Bottazzi, Giulio; Giachini, Daniele - 2022

comparing the performance of the agent described in Barberis et al. (1998) with the one of a pure Bayesian competitor. …

Persistent link: https://www.econbiz.de/10013161531

Unpacking Overconfident Behavior When Betting on Oneself

Abdellaoui, Mohammed; Bleichrodt, Han; Gutierrez, Cédric - 2023

/or ambiguity attitudes. Separating these factors is key for understanding and correcting overconfident behavior, as they may call … first experiment shows the importance of ambiguity attitudes for overconfident behavior. Optimistic ambiguity attitudes … (ambiguity seeking) counterbalanced the effect of pessimistic beliefs, leading to neither over- nor underconfident behavior. The …

Persistent link: https://www.econbiz.de/10014350225

Saving rates and portfolio choice with subsistence consumption

Achury, Carolina; Hubar, Sylwia; Koulovatianos, Christos - 2011

We analytically show that a common across rich/poor individuals Stone-Geary utility function with subsistence consumption in the context of a simple two-asset portfolio-choice model is capable of qualitatively and quantitatively explaining: (i) the higher saving rates of the rich, (ii) the...

Persistent link: https://www.econbiz.de/10010308579

Portfolio decisions on life annuities and financial assets with longevity and income uncertainty

Pech, Susanne - 2004

There are two stylised facts, namely weak demand for life-annuities and flat age-wealth profile that contradict the life-cycle hypothesis. In this paper we design a theoretical framework, which combines plausible arguments, which have been put forward in the literature to reconcile theory with...

Persistent link: https://www.econbiz.de/10010294565

Portfolio decisions on life annuities and financial assets with longevity and income uncertainty

Pech, Susanne - 2004

Persistent link: https://www.econbiz.de/10002519749