Disagreement About Fundamentals: Measurement and Consequences

Choosing to Disagree: Endogenous Dismissiveness and Overconfidence in Financial Markets

“…When 2 The empirical evidence in Banerjee (2011) suggests that the extent to which investors condition on prices varies substantially across stocks. More recent evidence suggests that both disagreement (e.g., Andrade et al (2016), Fischer, Kim, and Zhou (2020)) and overconfidence (e.g., Merkle (2017)) vary over time. 3 We follow Bénabou and Tirole (2016) and use the term "anticipatory utility" to refer to the contemporaneous utility that an individual derives from the anticipation of future outcomes.…”