Simultaneous over- and underconfidence: Evidence from experimental asset markets
- Author(s)
- Erich Kirchler, Boris Maciejovsky
- Abstract
In this paper we investigate individual over confidence within the context of an experimental asset market. Overall, 72 participants traded one risky asset on six markets of 12 participants each. Our results indicate that participants are not generally prone to overconfidence. A comparison of two different measures of overconfidence, (i) subjective confidence intervals and (ii) differences between objective accuracy and subjective certainty, lead to a different classification of behavior in our data-set. We observe well-calibration as well as over- and underconfidence.
- Organisation(s)
- External organisation(s)
- Max Planck Institute for Research into Economic Systems
- Journal
- Journal of Risk and Uncertainty
- Volume
- 25
- Pages
- 65-85
- No. of pages
- 21
- ISSN
- 0895-5646
- DOI
- https://doi.org/10.1023/A:1016319430881
- Publication date
- 2002
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 5010 Psychology
- Portal url
- https://ucris.univie.ac.at/portal/en/publications/simultaneous-over-and-underconfidence-evidence-from-experimental-asset-markets(e4a609df-4484-4a5a-b938-b47937c98e00).html