This paper studies an episode of dissemination of wrong stock index values in real time due to a software bug in the Indian Nifty index futures market on the morning of January 18, 2006. The episode provides an opportunity to test various models of cognitive biases and bounded rationality...

Recent literature in empirical finance is surveyed in its relation to underlying behavioral principles, principles which come primarily from psychology, sociology, and anthropology. The behavioral principles discussed are: prospect theory, regret and cognitive dissonance, anchoring, mental...

This paper will go into detail on a stock market simulation done by 352 different individuals. There was a cash prize for the participant who finished with the highest earned amount at the end of the simulation and each participant was asked a series of questions after they completed the...

Investors should reasonably transact their stocks. Unfortunately, not all of them are cogent. They make decisions based on some people's suggestions, such as friends, colleagues, family members, and overconfidence. This study attempts to test and analyze the effect of overconfidence and herding...

Multi-agent, financial forecasting, neural networks, dynamical systems, market modeling, cognitive systems, econometrics. - One of the challenges of financial research is to develop models that are capable of explaining and forecasting market price movements and returns.Agent based models focus...

Smith et al. (1988) reported large bubbles and crashes in experimental asset markets, a result that has been replicated many times. Here we test whether the occurrence of bubbles depends on the experimental subjects' cognitive sophistication. In a two-part experiment, we first run a battery of...