Theories on under- and over-reaction in asset prices fall into three types: (1) they are respectively driven by … identified to drive under- or over-reaction in particular; (3) price deviation from expected payoff cannot be justified by risk … over-reaction is caused by slow adjustment of prices to surprises, similar to the cause of under-reaction. It is the degree …

Many argue that under- and over-reaction in asset prices are caused by inherently different factors. We design an asset … based on overconfidence and disposition effect. Contrary to common beliefs, over-reaction patterns are present in our … reversal phase in over-reaction patterns is simply a sluggish adjustment, too. We propose a price inertia theory of under- and …

We investigate how the experience of extreme events, such as the COVID-19 market crash, influence risk-taking behavior …

combination of individual attitudes and market behavior, we find that these patterns survive despite a high level of heterogeneity …