Reference dependence and other behavioral biases
Reference Dependence and Choice Overload
... 6.1 Reference dependence and other behavioral biases Two of the most robust departures from standard rational choice are the compro- mise effect and the attraction ...some other ...
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Behavioral biases and the representative agent.
... as reference points and under this principle, increments near the end points of probability loom larger than increments near the middle of the ...the other one underestimating it by twice the standard ...
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Behavioral biases in information acquisition
... Our ability to justify decisions may be so well ingrained that it happens instanta- neously. Cognitive dissonance and self-perception theory are generally explained as if people think about their past actions and revise ...
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An inclusive taxonomy of behavioral biases
... on behavioral biases and their influence in the ...and biases; choices, values and frames; and social ...main biases within each category, and revise the main theoretical and empirical ...
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Behavioral Biases in Interpersonal Contexts
... towards other sources of un- certainty, as an individual’s willingness to take risk tends to differ across different sources of uncertainty (Ellsberg, 1961; Heath and Tversky, 1991; Keppe and Weber, 1995; Tversky ...
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Behavioral biases in intertemporal decisions
... We divide our firm-year observations into two groups. The first group consists of firm-years where Foreign Ownership is higher than 30 %. The second subsample includes all other firm-years. After that, we run the ...
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Asset price formation and behavioral biases
... the other hand, asset prices are not significantly affected when irrationally introspec- tive investors are combined with rational ...of other people and slowly become convinced that housing prices will ...
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Behavioral Biases in Annuity Choice: An Experiment
... To test our hypotheses, we varied conditions not affecting choices under the expected- utility-maximization assumption. In one dimension, we varied endowed asset type. In some sessions we endowed subjects with the ...
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Three essays on managerial behavioral biases
... The other independent variables are the same as the ones used in Table 2 and are defined in the ...or other), and loan type (term loan, revolver, bridge loan, or 365-day facility) dummies when ...all ...
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Behavioral biases in auctions: an experimental study
... To prevent any “in-front-jumping” in Dutch auctions (auction #4) based on other bidders’ physical movements, the subjects were not allowed to see each other. During the course of the Dutch auction, all ...
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Behavioral Biases of Mutual Fund Investors
... 25 typically put a smaller fraction of their portfolio in mutual funds, while overconfident investors typically allocate a larger proportion of their equity portfolio to mutual funds. In economic terms, a one standard ...
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Sportsbook pricing and the behavioral biases of bettors in the NHL
... bettor biases, is that the active management of the sportsbook in setting biased odds may be quite ...bettor biases to earn higher profits 1 ...on other sports or place bets in on-line casinos (or ...
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Behavioral Biases in Housing Markets - The Case of Oslo
... options and explicitly stated probabilities. Those requirements are often not met in the real world. Ever since its inception, prospect theory has inspired an ever-expanding field of research. This has led to the ...
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Frictions, behavioral biases and active portfolio management
... funds as funds with flows in the bottom tercile. We regress their spread in performance on the percentage of cross-trading within their family conditional of being in the same investment style and controlling for ...
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Behavioral biases in pension fund trustees' decision-making
... these biases in the pension fund trustee environment, it is still unknown how the specific context of trustee decisions can affect these psycholog- ical effects on their decisions; this setting may, potentially, ...
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The Impact of Financial Advice on Trade Performance and Behavioral Biases
... An explanation for the superior performance of independently executed purchases of a client versus this client’s advised purchases could be that the client not only follows the advice of the bank advisor, but ...
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Behavioral Biases and Corporate Decision Making on Investing Abroad
... of biases on a final investment decision can be mitigated through a procedural rationality and an involvement of cross-department teams in the investment ...the other hand, accumulated experience can cause ...
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Behavioral Biases and Corporate Decision Making on Investing Abroad
... of biases on a final investment decision can be mitigated through a procedural rationality and an involvement of cross-department teams in the investment ...the other hand, accumulated experience can cause ...
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Market Efficiency and Behavioral Biases in the Sports Betting Market
... inefficiencies: behavioral theo- ries suggest that market anomalies arise because people suffer from systematic biases when forming beliefs, while other studies suggest that inefficiencies can also ...
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Hard-to-Value Stocks, Behavioral Biases, and Informed Trading
... VII. Summary and Conclusion This paper uses investor-level data to provide direct evidence for an intu- itive but surprisingly untested proposition that investors make larger investment mistakes when valuation ...
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