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environments. Findings are: (1) Three-part tariffs, such as cellular service contracts, exploit consumer overconfidence. (2 …
Persistent link: https://www.econbiz.de/10010573870
between power and overconfidence (Experiment 3). Second, the link between power and overconfidence was severed when access to …
Persistent link: https://www.econbiz.de/10010576391
We investigate the theoretically proposed link between judgmental overconfidence and trading activity. In addition to … the relevant bias in the theoretical overconfidence literature. We relate the obtained overconfidence measures to trading …
Persistent link: https://www.econbiz.de/10010583910
This paper contributes to the recent behavioral economics literature by showing that whether or not overconfidence … that overconfidence may overturn fundamental relations between observable variables in perfect-competition asymmetric … information insurance markets. In monopolistic insurance markets, in constrast, we find that overconfidence may be observationally …
Persistent link: https://www.econbiz.de/10010702936
, overconfidence, and market sentiment. We show that these behavioural breaks can be well modelled via the Heterogeneous Agent Model …
Persistent link: https://www.econbiz.de/10010703190
This paper investigates collective denial and willful blindness in groups, organizations and markets. Agents with anticipatory preferences, linked through an interaction structure, choose how to interpret and recall public signals about future prospects. Wishful thinking (denial of bad news) is...
Persistent link: https://www.econbiz.de/10010704406
Purpose – This paper aims to understand whether the initiative of financial education through the use of simulations effectively teaches participants to operate in the markets in a profitable manner, while avoiding some cognitive biases. Design/methodology/approach – The use of simulations...
Persistent link: https://www.econbiz.de/10010706078
level of this last can be assigned to a phenomenon of overconfidence or a disposition effect. This paper studies these two …
Persistent link: https://www.econbiz.de/10010707933
. overconfidence) as well as pessimism (resp. doubt) both emerge as optimal beliefs. Furthermore, we obtain a positive correlation …
Persistent link: https://www.econbiz.de/10010708470
This paper suggests that the evolutionarily optimal belief of an agent’s intrinsic reproductive ability is systematically different from the posterior belief obtained by the perfect Bayesian updating. In particular, the optimal belief depends on how risk-averse the agent is. Although the...
Persistent link: https://www.econbiz.de/10010709098