Arbeitspapier
Overconfidence in Investment Decisions: An Experimental Approach
We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence increases (i) with the absolute deviation from optimal choices, (ii) with task complexity, and (iii) decreases with uncertainty as indicated by the difference between willingness to pay and to accept.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 626
- Classification
-
Wirtschaft
- Subject
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risky decision making
behavioral finance
portfolio choice
experimental economics
- Event
-
Geistige Schöpfung
- (who)
-
Dittrich, Dennis
Güth, Werner
Maciejovsky, Boris
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2001
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dittrich, Dennis
- Güth, Werner
- Maciejovsky, Boris
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2001
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