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Behavioral finance theory is used for the foreign exchange market to show, that the profit of a typical trader is mainly due to the higher number of correct positions. Using behavioral finance the amount of loss trades is larger than 60%, however the individual gains are larger than the losses...
Persistent link: https://www.econbiz.de/10010298891
The anchoring-and-adjustment heuristic has been studied in numerous experimental settings and is increasingly drawn … factors, we find robust effects for the social anchor, an increased bias for higher cognitive load, and only weak learning … effects. Finally, a comparison to a neutral, external anchor shows that the social context increases the bias, which we …
Persistent link: https://www.econbiz.de/10010333234
anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue … within $500 of the initial dollar value, although the maximum possible wagering value averages $5,914. This anchoring … individual behavioral attitudes and preferences, raising the anchoring amount by 10 percent translates to an increase of 3 …
Persistent link: https://www.econbiz.de/10011559579
We study the convergence of European bond markets and the anchoring of inflation expectations in euro area countries … substantial increase in the anchoring of long-term inflation expectations since EMU, particularly for Italy and Spain, which since …
Persistent link: https://www.econbiz.de/10011604863
The paper analyses the anchoring of inflation expectations of professional forecasters and consumers in the euro area …. We study anchoring, defined as the central bank’s ability to manage expectations, by paying special attention to the … de-anchoring. …
Persistent link: https://www.econbiz.de/10011605990
We compare the degree of anchoring of inflation expectations in the euro area, the United States and the United Kingdom … swaps and options, following Natoli and Sigalotti (2016). To quantify the degree of anchoring, we also propose a new … de-anchoring risk during the last quarter of 2014; while showing a significant reduction after the peak, our de-anchoring …
Persistent link: https://www.econbiz.de/10011606041
We analyze the degree of anchoring of inflation expectations in the euro area during the post-crisis period, with a …. Overall, our results signal a risk of downside de-anchoring of long-term inflation expectations. …
Persistent link: https://www.econbiz.de/10011606042
We investigate the relationship between anchoring and the emergence of bubbles in experimental asset markets. We show …
Persistent link: https://www.econbiz.de/10012064267
, motivation crowding, anchoring, and classroom peer effects. …
Persistent link: https://www.econbiz.de/10012114806
In this paper, we explore the degree of anchoring of consumers’ individual long-run inflation expectations utilizing …-run expectations fell significantly. While we observe that the anchoring of expectations increases for all age and birth cohorts, it …-run inflation expectations as compared to the young cohorts. Older cohorts show a higher volatility in their degree of anchoring and …
Persistent link: https://www.econbiz.de/10011872099