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We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more risk-averse to imminent than to distant...
Persistent link: https://www.econbiz.de/10010482950
We investigate how random luck in repeated variants of the risky investment game of Gneezy, Leonard, and List (2009); Gneezy and Potters (1997) influences risk-taking and discounting behavior in future risky prospects with probabilistic payouts one week, six, 12, and 24 months into the future....
Persistent link: https://www.econbiz.de/10014581500
Combining brokerage records and matching monthly survey measurements of a sample of individual investors from the Netherlands for the period April 2008 through March 2009, we examine how individual investors update their beliefs (return expectations and risk perceptions) and preferences (risk...
Persistent link: https://www.econbiz.de/10013037423
points are determined by expectations. In the first experiment, we endow subjects with an item and randomize the probability … determined by the status quo or when preferences are reference-independent. In the second experiment, we randomly assign subjects …
Persistent link: https://www.econbiz.de/10014201048
We explore the attitude towards risky career choices of young people in highly competitive environments. We empirically test which factors influence young elite athletes' tendency towards choosing a high-risk career option over a lower risk one; looking at the attitudes, of close to 1000 soccer...
Persistent link: https://www.econbiz.de/10012168408
We explore the attitude towards risky career choices of young people in highly competitive environments. We empirically test which factors influence young elite athletes’ tendency towards choosing a high-risk career option over a lower risk one; looking at the attitudes, of close to 1000 soccer...
Persistent link: https://www.econbiz.de/10010595762
We explore the attitude towards risky career choices of young people in highly competitive environments. We empirically test which factors influence young elite athletes' tendency towards choosing a high-risk career option over a lower risk one; looking at the attitudes, of close to 1000 soccer...
Persistent link: https://www.econbiz.de/10010596319
been directly tested in the laboratory. In this paper, we report an experiment regarding risk perception and risk taking …
Persistent link: https://www.econbiz.de/10014221815
We analyze the influence of individuals' degree of extraversion and neuroticism on the determinants of their risk-taking behavior in investment decisions. As there are no studies that investigate the influence of personality traits on risk attitude, risk perception, and return expectations in...
Persistent link: https://www.econbiz.de/10012895884
We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA) utility functions. We illustrate the consequences of this...
Persistent link: https://www.econbiz.de/10011382430