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a full picture of the outcomes of financial decision-making. Based on the analysis of theoretical and empirical studies …
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Overweighting private information is often used to explain various detrimental decisions. In behavioral economics and finance, it is usually modeled as a direct consequence of misperceiving signal reliability. This bias is typically dubbed overconfidence and linked to the judgment literature in...
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We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence...
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ambiguous lotteries in a financial decision context. The experiment can be viewed in two parts. The first part replicates an …This paper reports the results of an experiment that brings together psychological measures of competence and … used to explain elicited certainty equivalents in the second part of the experiment. Certainty equivalents were elicited …
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