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Many tests of asset pricing models address only the pricing predictions - but these pricing predictions rest on portfolio choice predictions which seem obviously wrong. This paper suggests a new approach to asset pricing and portfolio choices, based on unobserved heterogeneity. This approach...
Persistent link: https://www.econbiz.de/10003549745
. This existence of disposition effect is also supported by another experiment session showing that there is a holding time …
Persistent link: https://www.econbiz.de/10013058709
principles of Expected Utility Theory (EUT) and of Portfolio Selection Theory (PST). The experiment is performed with individuals …Many important economic and political decisions are made by teams. In the economic literature, however, the decision … a team decision algorithm, excess-risk vetoing, that combines simple majority voting with the right to veto alternatives …
Persistent link: https://www.econbiz.de/10014182702
economic decision making, and is taken as a performance-enhancer among some financial professionals. This is the first …
Persistent link: https://www.econbiz.de/10012972194
We study the effect of variation in correlation on investment decision in an experimental two asset application … attributed to common behavioral bias in financial decision. Field implications of the results are discussed …
Persistent link: https://www.econbiz.de/10012919355
and predominately sell winners. The data suggest that decision-dependent emotions may explain the differences. That is …
Persistent link: https://www.econbiz.de/10011325703
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...
Persistent link: https://www.econbiz.de/10011408444
A quantum financial approach to finite games of strategy is addressed, with an extension of Nash's theorem to the quantum financial setting, allowing for an entanglement of games of strategy with two-period financial allocation problems that are expressed in terms of: the consumption plans'...
Persistent link: https://www.econbiz.de/10013110911
Persistent link: https://www.econbiz.de/10003881320
Persistent link: https://www.econbiz.de/10010532783