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https://doi.org/10.1080/1331677X.2017.1311234

Overconfidence, risk aversion and individual financial decisions in experimental asset markets

Julija Michailova orcid id orcid.org/0000-0001-7872-1033
Alminas Mačiulis
Manuela Tvaronavičienė


Puni tekst: engleski pdf 1.272 Kb

str. 1119-1131

preuzimanja: 2.015

citiraj


Sažetak

Prior experiments revealed that investors’ overconfidence can result in
excessive trade and negative wealth effects. However, in most of these
studies, informational asymmetries were part of the experimental
design, and therefore no clear conclusion on whether the obtained
results were driven by overconfidence or informational asymmetries
could be made. The article addresses this issue by analysing individual
financial decisions based on the study of Michailova and Schmidt, who
ran an asset markets experiment with no informational asymmetries.
Additionally, the study controls for differences in individual risk
aversion. The data revealed that, in this setting, individual trading
activity and performance were influenced by overconfidence only for
female participants. Mistakes in future price forecasting, which were
negatively correlated with overconfidence, partially accounted for this
result. Risk aversion was uncorrelated wit

Ključne riječi

Overconfidence; miscalibration; risk aversion; financial decisions; economic experiments

Hrčak ID:

182590

URI

https://hrcak.srce.hr/182590

Datum izdavanja:

1.12.2017.

Posjeta: 2.652 *