Hindsight Bias and Individual Risk Attitude within the Context of Experimental Asset Markets
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Kirchler, Erich & Maciejovsky, Boris & Weber, Martin, 0000.
"Framing Effects on Asset Markets - An Experimental Analysis -,"
Sonderforschungsbereich 504 Publications
01-09, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Kirchler, Erich & Maciejovsky, Boris & Weber, Martin, 2001. "Framing effects on asset markets: An experimental analysis," SFB 373 Discussion Papers 2001,17, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Reinhard Selten & Abdolkarim Sadrieh & Klaus Abbink, 1999. "Money Does Not Induce Risk Neutral Behavior, but Binary Lotteries Do even Worse," Theory and Decision, Springer, vol. 46(3), pages 213-252, June.
- Myagkov, Mikhail & Plott, Charles R, 1997.
"Exchange Economies and Loss Exposure: Experiments Exploring Prospect Theory and Competitive Equilibria in Market Environments,"
American Economic Review, American Economic Association, vol. 87(5), pages 801-828, December.
- Mikhail & Plott, Charles R., 1995. "Exchange Economies and Loss Exposure: Experiments Exploring Prospect Theory and Competitive Equilibria in Market Environments," Working Papers 909, California Institute of Technology, Division of the Humanities and Social Sciences.
- Kirchler, Erich & Maciejovsky, Boris, 2002.
"Simultaneous Over- and Underconfidence: Evidence from Experimental Asset Markets,"
Journal of Risk and Uncertainty, Springer, vol. 25(1), pages 65-85, July.
- Maciejovsky, B. & Kirchler, E., 2001. "Simultaneous Over-and Underconfidence: Evidence from Experimental Aseet Markets," Papers 185, Flinders of South Australia - Discipline of Economics.
- Maciejovsky, Boris & Kirchler, Erich, 2001. "Simultaneous over- and underconfidence: Evidence from experimental asset markets," SFB 373 Discussion Papers 2001,44, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Krahnen, Jan Pieter & Rieck, Christian & Theissen, Erik, 1997. "Messung individueller Risikoeinstellungen," CFS Working Paper Series 1997/03, Center for Financial Studies (CFS).
- Stahlberg, Dagmar & Eller, Frank & Maass, Anne & Frey, Dieter, 1995. "We Knew It All Along: Hindsight Bias in Groups," Organizational Behavior and Human Decision Processes, Elsevier, vol. 63(1), pages 46-58, July.
- Fellner, Gerlinde & Maciejovsky, Boris, 2007.
"Risk attitude and market behavior: Evidence from experimental asset markets,"
Journal of Economic Psychology, Elsevier, vol. 28(3), pages 338-350, June.
- Gerlinde Fellner & Boris Maciejovsky, "undated". "Risk Attitude and Market Behavior: Evidence from Experimental Asset Markets," Papers on Strategic Interaction 2002-34, Max Planck Institute of Economics, Strategic Interaction Group.
- Rietz, Thomas A, 1993. "Implementing and Testing Risk-Preference-Induction Mechanisms in Experimental Sealed-Bid Auctions," Journal of Risk and Uncertainty, Springer, vol. 7(2), pages 199-213, October.
- Cox, James C & Smith, Vernon L & Walker, James M, 1985. "Experimental Development of Sealed-Bid Auction Theory: Calibrating Controls for Risk Aversion," American Economic Review, American Economic Association, vol. 75(2), pages 160-165, May.
- Terrance Odean, 1998.
"Are Investors Reluctant to Realize Their Losses?,"
Journal of Finance,
American Finance Association, vol. 53(5), pages 1775-1798, October.
- Terrance Odean., 1996. "Are Investors Reluctant to Realize Their Losses?," Research Program in Finance Working Papers RPF-269, University of California at Berkeley.
- Walker, James M & Smith, Vernon L & Cox, James C, 1990. "Inducing Risk-Neutral Preferences: An Examination in a Controlled Market Environment," Journal of Risk and Uncertainty, Springer, vol. 3(1), pages 5-24, March.
- Camerer, Colin & Loewenstein, George & Weber, Martin, 1989. "The Curse of Knowledge in Economic Settings: An Experimental Analysis," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1232-1254, October.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- Dennis Dittrich & Werner Guth & Boris Maciejovsky, 2005.
"Overconfidence in investment decisions: An experimental approach,"
The European Journal of Finance, Taylor & Francis Journals, vol. 11(6), pages 471-491.
- Dennis Dittrich & Werner Güth & Boris Maciejovsky, "undated". "Overconfidence in Investment Decisions: An Experimental Approach," Papers on Strategic Interaction 2001-03, Max Planck Institute of Economics, Strategic Interaction Group.
- Dennis Dittrich & Werner Güth & Boris Maciejovsky, 2001. "Overconfidence in Investment Decisions: An Experimental Approach," CESifo Working Paper Series 626, CESifo.
- M. J. Brennan, 1995. "The Individual Investor," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 18(1), pages 59-74, March.
- Krahnen, Jan Pieter & Rieck, Christian & Theissen, Erik, 1997. "Inferring risk attitudes from certainty equivalents: Some lessons from an experimental study," Journal of Economic Psychology, Elsevier, vol. 18(5), pages 469-486, September.
- Creyer, Elizabeth & William T., Jr. Ross, 1993. "Hindsight Bias and Inferences in Choice: The Mediating Effect of Cognitive Effort," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(1), pages 61-77, June.
- Werner F. M. De Bondt & Richard H. Thaler, 1994. "Financial Decision-Making in Markets and Firms: A Behavioral Perspective," NBER Working Papers 4777, National Bureau of Economic Research, Inc.
- Weber, Martin & Keppe, Hans-Jurgen & Meyer-Delius, Gabriela, 2000. "The impact of endowment framing on market prices -- an experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 41(2), pages 159-176, February.
- Christensen-Szalanski, Jay J. J. & Willham, Cynthia Fobian, 1991. "The hindsight bias: A meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 48(1), pages 147-168, February.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Hubert J. Kiss & Laszlo A. Koczy & Agnes Pinter & Balazs R. Sziklai, 2019. "Does risk sorting explain bubbles?," CERS-IE WORKING PAPERS 1905, Institute of Economics, Centre for Economic and Regional Studies.
- Fellner, Gerlinde & Maciejovsky, Boris, 2007.
"Risk attitude and market behavior: Evidence from experimental asset markets,"
Journal of Economic Psychology, Elsevier, vol. 28(3), pages 338-350, June.
- Gerlinde Fellner & Boris Maciejovsky, "undated". "Risk Attitude and Market Behavior: Evidence from Experimental Asset Markets," Papers on Strategic Interaction 2002-34, Max Planck Institute of Economics, Strategic Interaction Group.
- Erich Kirchler & Boris Maciejovsky & Martin Weber, 2010.
"Framing Effects, Selective Information and Market Behavior: An Experimental Analysis,"
Chapters, in: Brian Bruce (ed.), Handbook of Behavioral Finance, chapter 1,
Edward Elgar Publishing.
- Erich Kirchler & Boris Maciejovsky & Martin Weber, 2004. "Framing Effects, Selective Information and Market Behavior An Experimental Analysis ," Papers on Strategic Interaction 2004-16, Max Planck Institute of Economics, Strategic Interaction Group.
- Kevin Lee & Scott Miller & Nicole Velasquez & Christi Wann, 2013. "The Effect of Investor Bias and Gender on Portfolio Performance and Risk," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(1), pages 1-16.
- Barasinska, Nataliya & Schäfer, Dorothea & Stephan, Andreas, 2012.
"Individual Risk Attitudes and the Composition of Financial Portfolios: Evidence from German Household Portfolios,"
EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(1), pages 1-14.
- Barasinska, Nataliya & Schäfer, Dorothea & Stephan, Andreas, 2012. "Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios," The Quarterly Review of Economics and Finance, Elsevier, vol. 52(1), pages 1-14.
- Pierrot, Thibaud, 2019. "Negotiation under the curse of knowledge," Discussion Papers, Research Unit: Market Behavior SP II 2019-211r, WZB Berlin Social Science Center, revised 2019.
- Kiss, Hubert J. & Kóczy, László Á. & Pintér, Ágnes & Sziklai, Balázs R., 2022. "Does risk sorting explain overpricing in experimental asset markets?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Fellner, Gerlinde & Guth, Werner & Maciejovsky, Boris, 2004.
"Illusion of expertise in portfolio decisions: an experimental approach,"
Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 355-376, November.
- Gerlinde Fellner & Werner Güth & Boris Maciejovsky, 2001. "Illusion of Expertise in Portfolio Decisions - An Experimental Approach," CESifo Working Paper Series 621, CESifo.
- Gerlinde Fellner & Werner Güth & Boris Maciejovsky, 2001. "Illusion of Expertise in Portfolio Decisions - An Experimental Approach -," Papers on Strategic Interaction 2001-02, Max Planck Institute of Economics, Strategic Interaction Group.
- Fellner, Gerlinde & Maciejovsky, Boris, 2007.
"Risk attitude and market behavior: Evidence from experimental asset markets,"
Journal of Economic Psychology, Elsevier, vol. 28(3), pages 338-350, June.
- Gerlinde Fellner & Boris Maciejovsky, "undated". "Risk Attitude and Market Behavior: Evidence from Experimental Asset Markets," Papers on Strategic Interaction 2002-34, Max Planck Institute of Economics, Strategic Interaction Group.
- Erich Kirchler & Boris Maciejovsky & Martin Weber, 2010.
"Framing Effects, Selective Information and Market Behavior: An Experimental Analysis,"
Chapters, in: Brian Bruce (ed.), Handbook of Behavioral Finance, chapter 1,
Edward Elgar Publishing.
- Erich Kirchler & Boris Maciejovsky & Martin Weber, 2004. "Framing Effects, Selective Information and Market Behavior An Experimental Analysis ," Papers on Strategic Interaction 2004-16, Max Planck Institute of Economics, Strategic Interaction Group.
- Michailova, Julija, 2010.
"Overconfidence, Risk Aversion and Individual Financial Decisions in Experimental Asset Markets,"
MPRA Paper
53114, University Library of Munich, Germany, revised Jan 2014.
- Michailova, Julija, 2010. "Overconfidence, risk aversion and (economic) behavior of individual traders in experimental asset markets," MPRA Paper 26390, University Library of Munich, Germany.
- Harrison, Glenn W. & Martínez-Correa, Jimmy & Swarthout, J. Todd, 2013.
"Inducing risk neutral preferences with binary lotteries: A reconsideration,"
Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 145-159.
- Glenn W. Harrison & Jimmy MartÃnez-Correa & J. Todd Swarthout, 2012. "Inducing Risk Neutral Preferences with Binary Lotteries: A Reconsideration," Experimental Economics Center Working Paper Series 2012-02, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- Agranov, Marina & Tergiman, Chloe, 2013. "Incentives and compensation schemes: An experimental study," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 238-247.
- K.S. Muehlfeld & G.U. Weitzel & A. van Witteloostuijn, 2012. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Working Papers 12-18, Utrecht School of Economics.
- Markus Glaser & Martin Weber, 2007.
"Overconfidence and trading volume,"
The Geneva Papers on Risk and Insurance Theory, Springer;International Association for the Study of Insurance Economics (The Geneva Association), vol. 32(1), pages 1-36, June.
- Markus Glaser & Martin Weber, 1990. "Overconfidence and trading volume," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 32(1), pages 1-36, January.
- Glaser, Markus & Weber, Martin, 2003. "Overconfidence and trading volume," Papers 03-07, Sonderforschungsbreich 504.
- Glaser, Markus & Weber, Martin, 2005. "Overconfidence and Trading Volume," SIFR Research Report Series 40, Institute for Financial Research.
- Glaser, Markus & Weber, Martin, 2003. "Overconfidence and Trading Volume," Sonderforschungsbereich 504 Publications 03-07, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Weber, Martin & Glaser, Markus, 2003. "Overconfidence and Trading Volume," CEPR Discussion Papers 3941, C.E.P.R. Discussion Papers.
- Weber, Martin & Welfens, Frank, 2007.
"How do Markets React to Fundamental Shocks? An Experimental Analysis on Underreaction and Momentum,"
Sonderforschungsbereich 504 Publications
07-42, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Weber, Martin & Welfens, Frank, 2007. "How do markets react to fundamental shocks? : An experimental analysis on underreaction and momentum," Papers 07-42, Sonderforschungsbreich 504.
- Danz, David, 2020. "Never underestimate your opponent: Hindsight bias causes overplacement and overentry into competition," Games and Economic Behavior, Elsevier, vol. 124(C), pages 588-603.
- Dennis Dittrich & Werner Guth & Boris Maciejovsky, 2005.
"Overconfidence in investment decisions: An experimental approach,"
The European Journal of Finance, Taylor & Francis Journals, vol. 11(6), pages 471-491.
- Dennis Dittrich & Werner Güth & Boris Maciejovsky, "undated". "Overconfidence in Investment Decisions: An Experimental Approach," Papers on Strategic Interaction 2001-03, Max Planck Institute of Economics, Strategic Interaction Group.
- Dennis Dittrich & Werner Güth & Boris Maciejovsky, 2001. "Overconfidence in Investment Decisions: An Experimental Approach," CESifo Working Paper Series 626, CESifo.
- Güth, W. & van Damme, E.E.C. & Weber, M., 1995. "Irrational risk aversion on probabilities : Experimental evidence of deciding between lotteries," Other publications TiSEM 98b7aa86-8e5b-4bd2-9684-8, Tilburg University, School of Economics and Management.
- Swagata Bhattacharjee, 2019. "Delegation Using Forward Induction," Working Papers 17, Ashoka University, Department of Economics.
- Martin Weber & Werner G³th & Eric van Damme, 2005.
"Risk Aversion on Probabilities: Experimental Evidence of Deciding Between Lotteries,"
Homo Oeconomicus, Institute of SocioEconomics, vol. 22, pages 192-209.
- Güth, W. & van Damme, E.E.C. & Weber, M., 2005. "Risk aversion on probabilities : Experimental evidence of deciding between lotteries," Other publications TiSEM 291d5201-b5b2-4789-95cb-b, Tilburg University, School of Economics and Management.
- David Masclet & Emmanuel Peterle & Sophie Larribeau, 2012. "Gender Differences in Competitive and Non Competitive Environments: An Experimental Evidence," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201236, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
- Swagata Bhattacharjee, 2019. "Delegation Using Forward Induction," Working Papers 1026, Ashoka University, Department of Economics.
- Kiss, Hubert J. & Kóczy, László Á. & Pintér, Ágnes & Sziklai, Balázs R., 2022. "Does risk sorting explain overpricing in experimental asset markets?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).
- Reinhard Selten & Abdolkarim Sadrieh & Klaus Abbink, 1999. "Money Does Not Induce Risk Neutral Behavior, but Binary Lotteries Do even Worse," Theory and Decision, Springer, vol. 46(3), pages 213-252, June.
- Hubert J. Kiss & Laszlo A. Koczy & Agnes Pinter & Balazs R. Sziklai, 2019. "Does risk sorting explain bubbles?," CERS-IE WORKING PAPERS 1905, Institute of Economics, Centre for Economic and Regional Studies.
- Muehlfeld, Katrin & Weitzel, Utz & van Witteloostuijn, Arjen, 2013. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 195-209.
More about this item
Keywords
Hindsight bias; Risk attitude; Financial markets; Experimental economics; Behavioral finance;All these keywords.
JEL classification:
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esi:discus:2002-16. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Karin Richter (email available below). General contact details of provider: https://edirc.repec.org/data/mpiewde.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.