Associative memory, beliefs and market interactions
Journal of Financial Economics,
Journal Year:
2024,
Volume and Issue:
157, P. 103853 - 103853
Published: May 7, 2024
Recent
theories
and
narratives
highlight
the
potential
role
of
associative
recall
in
driving
overreaction
expectations
market
behavior.
Based
on
a
simple
model,
we
test
this
idea
through
series
experiments
which
news
are
communicated
with
memorable
contexts.
Because
experimental
participants
predominantly
remember
those
past
that
get
cued
by
new
information,
their
beliefs
about
fundamentals
strongly
overreact.
In
betting
experiment,
translates
into
prices,
makes
realized
prices
too
extreme.
Our
results
importance
memory
for
financial
decisions.
Language: Английский
The moral preferences of investors: Experimental evidence
Journal of Financial Economics,
Journal Year:
2024,
Volume and Issue:
163, P. 103955 - 103955
Published: Nov. 1, 2024
Language: Английский
Beliefs about the Stock Market and Investment Choices: Evidence from a Survey and a Field Experiment
Review of Financial Studies,
Journal Year:
2024,
Volume and Issue:
unknown
Published: Oct. 9, 2024
Abstract
We
survey
retail
investors
at
an
online
bank
to
study
how
beliefs
about
the
autocorrelation
of
aggregate
stock
returns
shape
investment
decisions
measured
in
administrative
account
data.
Individuals’
exhibit
substantial
heterogeneity
and
predict
trading
responses
market
movements.
inform
half
our
respondents
that,
historically,
was
close
zero,
which
causes
them
update
their
perceived
current
return
expectations.
The
treatment
shifts
respondents’
equity
purchases
during
COVID-19
crash
months
later
direction
implied
by
intervention.
Our
results
provide
causal
evidence
drivers
disagreement
trade
asset
markets.
Language: Английский
Stubborn by Design: Neurobiological Foundation for Maladaptive Risk-Taking in Downturns
SSRN Electronic Journal,
Journal Year:
2025,
Volume and Issue:
unknown
Published: Jan. 1, 2025
Language: Английский
Mandates and Portfolio Inelasticity
Shyam Mehta
No information about this author
Published: Jan. 1, 2025
Language: Английский
Overnight vs. Intraday Returns: Investor Disagreement, Information Uncertainty, and Future Stock Returns
Published: Jan. 1, 2025
Language: Английский
Predicting Asset Return Shifts: Experimental Evidence on Human Forecasting Ability
Published: Jan. 1, 2024
Language: Английский
Cognitive Imprecision and Strategic Behavior
SSRN Electronic Journal,
Journal Year:
2021,
Volume and Issue:
unknown
Published: Jan. 1, 2021
We
propose
and
experimentally
test
a
theory
of
strategic
behavior
in
which
players
are
cognitively
imprecise
perceive
fundamental
parameter
with
noise.
focus
on
2
x
coordination
games,
generate
multiple
equilibria
when
perception
is
precise.
When
adding
small
amount
cognitive
imprecision
to
the
model,
we
obtain
unique
equilibrium
where
use
simple
cutoff
strategy.
The
model
further
predicts
that
context-dependent:
implement
strategy
noise,
noise
decreases
volatility.
Our
experimental
data
strongly
support
this
novel
prediction
reject
several
alternative
game-theoretic
models
do
not
predict
context-dependence.
also
find
subjects
aware
other
players'
imprecision,
key
generating
uncertainty.
framework
has
important
implications
for
literature
global
games
and,
more
broadly,
illuminates
role
both
random
context-dependent
games.
Language: Английский