Investor attention, overconfidence and category learning
نویسندگان
چکیده
منابع مشابه
Investor attention, overconfidence and category learning
Motivated by psychological evidence that attention is a scarce cognitive resource, we model investors’ attention allocation in learning and study the effects of this on asset-price dynamics. We show that limited investor attention leads to category-learning behavior, i.e., investors tend to process more market and sector-wide information than firm-specific information. This endogenous structure...
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Recent research documents that institutional or large investors act as antagonists to other investors by showing opposite trading behavior following disclosure of new information. Using an extremely comprehensive official transactions data set from Finland, we set out to explore the interrelation between investor size and behavior. More specifically, we test whether investor size is positively ...
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An eyetracking version of the classic Shepard, Hovland, and Jenkins (1961) experiment was conducted. Forty years of research has assumed that category learning often involves learning to selectively attend to only those stimulus dimensions useful for classification. We confirmed that participants learned to allocate their attention optimally. We also found that learners tend to fixate all stimu...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 2006
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2005.05.003