Sensation Seeking, Overconfidence, and Trading Activity

Overconfidence and Trading Volume

Theoretical models predict that overconfident investors will trade more than rational investors. We directly test this hypothesis by correlating individual overconfidence scores with several measures of trading volume of individual investors (number of trades, turnover). Approximately 3000 online broker investors were asked to answer an internet questionnaire which was designed to measure vario...

Sensation seeking in adolescents

Sensation Seeking Scale: Indian Adaptation

Sensation seeking refers to a biologically based personality dimension defined as the need for varied, novel and complex sensations and experiences, and the willingness to take physical and social risks for the sake of such experiences. Although researched worldwide for nearly three decades now, there is to date no published Indian study utilizing the concept of sensation seeking. This paper de...

Ambiguity vs risk: An experimental study of overconfidence, gender and trading activity

In this paper, we investigate the effect of overconfidence and gender on trading activity in experimental asset markets under a symmetric information setting. We measure the degree of overconfidence in three forms—miscalibration, a better-than-average effect, and the illusion of control, and design two treatments (Ambiguity and Risk) that differ by the prior information available about the dist...

Sensation seeking and the aversive motivational system.

Sensation seeking (SS) has traditionally been viewed as a phenomenon of the appetitive motivational system. The limited SS research exploring contributions from the aversive motivational system reveals greater anxious reactivity to dangerous activities among low sensation seekers. The present study extends this line of work by comparing levels of fear and anxiety during anticipation of predicta...