Simultaneous over- and underconfidence: Evidence from experimental asset markets
AbstractIn this paper individual overconfidence within the context of an experimental asset market is investigated. Overall, 72 participants traded one risky asset on six markets of 12 participants each. The results indicate that individuals were not generally overconfident. Moreover, overconfidence was found to be moderated by the methodology used. Participants were well-calibrated as well as over- and underconfident during some trading periods with respect to the accuracy of their predictions, while their subjective confidence intervals were generally too narrow and overconfidence was found to increase with experience. --
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Bibliographic InfoPaper provided by Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes in its series SFB 373 Discussion Papers with number 2001,44.
Date of creation: 2001
Date of revision:
Experimental Economics; Financial Markets; Overconfidence;
Find related papers by JEL classification:
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- D40 - Microeconomics - - Market Structure and Pricing - - - General
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- Boris Maciejovsky & Tarek El-Sehitya & Hans Haumerb & Christian Helmensteinc & Erich Kirchlerd, . "Hindsight Bias and Individual Risk Attitude within the Context of Experimental Asset Markets," Papers on Strategic Interaction 2002-16, Max Planck Institute of Economics, Strategic Interaction Group.
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