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, we show that regret aversion (unobservable bias) significantly reduces extremeness aversion (observable bias) and … mediates the influence of cognitive regulatory focus (unobservable bias). …
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Predictive AI is increasingly used to guide decisions on agents. I show that even a bias-neutral predictive AI can … potentially amplify exogenous (human) bias in settings where the predictive AI represents a cost-adjusted precision gain to … belief updating, expected victims of bias become less likely to be saved by randomness under more precise predictions. An …
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This paper presents a simulative model of a financial market, based on a fully operating order book with limit and market orders. The heterogeneity of traders is characterized not only with regards to their trading rules, but also by introducing a behavioral individual risk aversion and a...
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