2008
DOI: 10.1016/j.jebo.2006.05.004
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What affects the market's ability to adjust for optimistic forecast bias? Evidence from experimental asset markets

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Cited by 7 publications
(5 citation statements)
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“…A large experimental literature has followed Smith, Suchanek, and Williams (1988) in analyzing laboratory asset market trading (see, for example, King et al 1993; Van Boening, Williams, and LaMaster 1993;Porter and Smith 1995;Fisher and Kelly 2000;Lei, Noussair, and Plott 2001;Noussair, Lei, and Plott 2001;Dufwenberg, Lindqvist, and Moore 2005;Ackert, Church, and Zhang 2008). In all of these studies, a market is created for a dividendpaying asset with a lifetime of a finite number of periods, and the asset structure is common knowledge.…”
Section: Hypothesis 2: Overconfidence Leads To Lower Individual Profitmentioning
confidence: 99%
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“…A large experimental literature has followed Smith, Suchanek, and Williams (1988) in analyzing laboratory asset market trading (see, for example, King et al 1993; Van Boening, Williams, and LaMaster 1993;Porter and Smith 1995;Fisher and Kelly 2000;Lei, Noussair, and Plott 2001;Noussair, Lei, and Plott 2001;Dufwenberg, Lindqvist, and Moore 2005;Ackert, Church, and Zhang 2008). In all of these studies, a market is created for a dividendpaying asset with a lifetime of a finite number of periods, and the asset structure is common knowledge.…”
Section: Hypothesis 2: Overconfidence Leads To Lower Individual Profitmentioning
confidence: 99%
“… find that bubbles diminish if a third of the subject population is experienced in laboratory asset market trading. conduct an experiment in which they test how different kinds of forecasts (unbiased, low optimistic forecast bias, high optimistic forecast bias), private or public availability of the forecast, and trading experience influence market behavior. They find that unbiased forecasts are reflected in period‐end price in markets with private information and inexperienced traders.…”
Section: Hypothesesmentioning
confidence: 99%
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“…We assume forecasts are unbiased. See an experimental study by Ackert et al (2008) for forecasts with biases.…”
mentioning
confidence: 99%