Simultaneous over- and underconfidence: Evidence from experimental asset markets

Boris Maciejovsky and Erich Kirchler

No 2001,44, SFB 373 Discussion Papers from Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Abstract: In 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.

Keywords: Experimental Economics; Financial Markets; Overconfidence (search for similar items in EconPapers)
JEL-codes: C90 D40 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Simultaneous Over- and Underconfidence: Evidence from Experimental Asset Markets (2002)
Working Paper: Simultaneous Over-and Underconfidence: Evidence from Experimental Aseet Markets (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb373:200144

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