Leeson, Peter; Coyne, Christopher; Boettke, Peter - In: Review of Political Economy 18 (2006) 1, pp. 79-90
While both errors of overoptimism and errors of overpessimism are possible in the face of imperfect information, the presence of option value from deferring a decision to exchange causes trader errors to be overpessimistically biased. This is problematic because, unlike errors of overoptimism,...