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Persistent link: https://www.econbiz.de/10011864973
In this paper we investigate four hypotheses which are inconsistent with expected utility theory, but may well be explained by prospect theory. It deals with framing, the non-linearity of subjective probabilities, the disposition effect, and the correspondence of different experimental risk...
Persistent link: https://www.econbiz.de/10009613618
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
and opens a door for future research on the role of biases on entrepreneurs’ decision-making processes. …
Persistent link: https://www.econbiz.de/10011982570
We design an experiment to test the hypothesis that, in violation of Bayes Rule, some people respond more forcefully to … information, and control for risk attitude. We find that the strength-weight bias affects expectations, but that its magnitude is … significantly lower than originally reported. Controls for non-linear utility further reduce the bias. Our results suggest that …
Persistent link: https://www.econbiz.de/10011347344
Persistent link: https://www.econbiz.de/10012794196
-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in …
Persistent link: https://www.econbiz.de/10011789104
We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005)...
Persistent link: https://www.econbiz.de/10003716522
We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005)...
Persistent link: https://www.econbiz.de/10003747336
We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005)...
Persistent link: https://www.econbiz.de/10013324818