On the Measurement of Overconfidence: An Experimental Study
Journal: International Journal of Economics and Financial Research (Vol.4, No. 1)Publication Date: 2018-01-15
Authors : Markus Spiwoks; Kilian Bizer;
Page : 30-37
Keywords : Behavioral finance; Experiments; Overconfidence; Stock price forecasts; Gender studies.;
Abstract
This study addresses two methods commonly used to measure overconfidence and examines their reliability. It is shown that traditional methods of assessing subjective certainty concerning a given forecast can contribute to a systematic overestimation of overconfidence. It also becomes apparent that a common approach measuring relative overconfidence can cause a distortion of scientific results. This is particularly valid for study groups in which female and male participants are not equally represented.
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Last modified: 2018-11-06 17:40:45