Individual attitudes and market dynamics towards imprecision

Bibliographic Details
Authors and Corporations: Huber, Christoph (Author), Rose, Julia (Author)
Title: Individual attitudes and market dynamics towards imprecision Christoph Huber, Julia Rose
published:
Innsbruck, Austria: Research platform Empirical and Experimental Economics, University of Innsbruck, [2019]
Physical Description:1 Online-Ressource (circa 39 Seiten); Illustrationen
Part of: Working papers in economics and statistics ; 2019, 06
Summary:In real world financial markets, dividend processes as well as fundamental values are governed by imprecision; neither the objective probabilities of returns nor the actual amounts of possible returns are known for certain. With a novel experimental approach, we analyze the impact of risk, imprecision in probabilities (ambiguity), imprecision in outcomes, and a combination of the latter two in an individual decision task and in a market environment. In contrast to the previous literature, we do not find any significant imprecision premia for imprecise probabilities. However, we do find significant and persistent imprecision-in-outcomes seeking in the individual task as well as the market setting. Looking deeper into the combination of individual attitudes and market behavior, we find that these patterns survive despite a high level of heterogeneity in individual's beliefs about outcomes.
Type of Resource:E-Book
Source:Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Language: English