The security market line (SML) accords with the capital asset pricing model (CAPM) by taking on an upward slope in pessimistic sentiment periods, but is downward sloping during optimistic periods. We hypothesize that this finding obtains because periods of optimism attract equity investment by unsophisticated, overconfident, traders in risky opportunities (high beta stocks), while such traders ...

A culturally relevant framework was used to examine variations on optimistic and pessimistic bias in Westerners and Easterners. Study 1 showed that 136 European Americans compared with 159 Japanese were more likely to predict typical positive events to occur to self than to a sibling. The opposite pattern emerged in the prediction of typical negative events. Study 2 replicated these findings on...

This paper establishes an approach to forecast air cargo demand related to terminal capacity expansion. To balance capacity and demand, it is required to forecast the future demand based on optimistic and pessimistic projections to decide when and how much, the airport should expand the capacity. System dynamics simulation model can provide reliable forecast and generate scenarios to test alter...

We consider two-player zero-sum games with countably infinite action spaces and bounded payoff functions. The players’ strategies are finitely additive probability measures, called charges. Since a strategy profile does not always induce a unique expected payoff, we distinguish two extreme attitudes of players. A player is viewed as pessimistic if he always evaluates the range of possible expec...

In Possibilistic Decision Theory (PDT), decisions are ranked by a pessimistic or by an optimistic qualitative criteria. The preference relations induced by these criteria have been axiomatized by corresponding sets of rationality postulates, both à la Von Neumann and Morgenstern and à la Savage. In this paper we first address a particular issue regarding the axiomatic systems of PDT à la Von Ne...

This paper describes a logical machinery for computing decisions, where the available knowledge on the state of the world is described by a possibilistic propositional logic base (i.e., a collection of logical statements associated with qualitative certainty levels), and where the preferences of the user are also described by another possibilistic logic base whose formula weights are interprete...

Globally distributed collaboration is becoming increasingly common nowadays, yet research on this topic has remained limited. Literature on global collaboration can be classified into two streams: pessimistic and optimistic perspectives on the impact of distance and time zone differences. Researchers in the pessimistic tradition found support for the proposition that collaboration suffers from ...

Previous studies have shown that a pessimistic explanatory style is a risk factor for illness, but the factors linking explanatory style and illness are unknown. One's characteristic response to poor health may mediate this relationship. Perhaps pessimistic individuals act helplessly in the face of their symptoms, thereby exacerbating disease. In the present study, we investigated this possibil...