Research indicates that individual investors trade excessively and underperform the market indices, Barber and Odean (2000). The purpose of this paper is to help explain which behavioral biases, if any, can explain this result using a simulation approach. Results indicate that putting too much weight on the current environment, anchoring, is the largest factor in explaining individual investor ...

We investigate the way investors react to prior gains/losses. We use a new and unique dataset with detailed information on investors’ various components of wealth, income, demographic characteristics and portfolio holdings identified at the stock level. We test the theory of loss aversion against the alternative provided by standard utility theory and the house-money effect. We show that, on a ...

in recent years social psychologists have concerned themselves with the ways people classify information about others, store them in their memories, and judge others on. such studies on the process of social cognition have three aspects: structure, process, and causes: i.e. (i) the structure of the social knowledge, (ii) the process of thinking about others, the performance of cognitive categor...

Choice decisions made by users of online applications can suffer from biases due to the users’ level of engagement. For instance, low engagement users may make random choices with no concern for the quality of items offered. This biased choice data can corrupt estimates of user preferences for items. However, one can correct for these biases if additional behavioral data is utilized. To do this...

An implicit expectation of asking users to rate agents, such as an AI decision-aid, is that they will use only relevant information—ask them about agent’s benevolence, and should consider whether or not it was kind. Behavioral science, however, suggests people sometimes irrelevant information. We identify instance this phenomenon, where who experience better outcomes in a human-agent interactio...

normal 0 false false false en-us x-none ar-sa introduction: hepatitis b is one of the world's health problems and increased the risk of hepatocellular carcinoma and liver cirrhosis. medical students exposed to risk because of future job, and being infected than the general population. this study will survey level of knowledge, risk perception and behavioral intention medical students about hepa...

This study investigates whether the adverse e¤ects of investors’behavioral biases extend beyond the domain of …nancial markets to the broad macro-economy. We focus on the risk sharing (or income smoothing) role of …nancial markets and demonstrate that risk sharing levels are higher in U.S. states in which investors have higher cognitive abilities and exhibit weaker behavioral biases. Further, s...