This paper examines whether individual investors exhibit stronger behavioral biases when value ambiguity or information uncertainty is higher. Using a six year (1991 to 1996) panel of retail stock holdings and trades, I find that investors are more overconfident and exhibit stronger disposition effect when stocks are more difficult to value. Furthermore, using trading correlation as a proxy for...

We conduct a neutral-context laboratory experiment to systematically investigate the role of the hit-by-bus concern in explaining the annuitization puzzle: the low rate of retirement-asset annuitization relative to the predictions of standard models. We vary endowed asset (annuity vs. stock of wealth vs. no explicit endowment), and find a strong endowment effect. Furthermore, we find that the o...

We investigate whether behavioral biases affect the order submission strategies of investors. We take advantage of a very unique database provided by the Shanghai Stock Exchange, which allows us to track order submissions and executions for every investor, and compare with their trading performance of individual stocks. Consistent with previous studies, we find that investors exhibit dispositio...

Modern legal scholars frequently and increasingly base their analyses on the assumption, grounded largely in the extensive experimental literature, that individuals are subject to a number of systematic behavioral biases. Within the legal literature, behavioral economic analysis has been relied upon to generate a significant number of proposals for paternalistic regulation. These proposals are ...

Behavioral science has witnessed an explosion in the number of biases identified by behavioral scientists, to more than 200 at present. This article identifies 10 most important for project management. First, we argue it is a mistake equate bias with cognitive bias, as common. Cognitive half story; political other half. Second, list top management: (1) strategic misrepresentation, (2) optimism ...

For decades, the advent of behavioural finance has challenged market theories. The latter been subject many criticisms from advocates behavioral especially with regard to rationality investors. Indeed, recent studies have shown that investors are bias arising their own daily behaviour, which can distort investment decisions. This article is intended be a study different factors affecting decisi...