Kiel Working Papers, Kiel Institute for World Economics
No 1612:
Overconfidence, Experience, and Professionalism: An Experimental Study
Lukas Menkhoff, Maik Schmeling and Ulrich Schmidt
Abstract: This paper presents an online-experiment on overconfidence
in the context of financial markets. Our subject pool consists of
institutional investors, investment advisors and individual investors, all
of them being registered users of a large online platform for market
sentiment data. Due to their registration, several socioeconomic
characteristics of participants can be controlled for in our analysis. It
turns out that there are stable differences in overconfidence between the
three investor groups. Moreover, investment experience and age have a
significant impact on the degree of overconfidence which goes surprisingly
in opposite direction. We argue that these results have important
implications for studies analyzing the impact of experience on behavior in
(financial) markets
Keywords: Market behavior, overconfidence, experience, professionalism; (follow links to similar papers)
JEL-Codes: G1,; D81,; F30; (follow links to similar papers)
17 pages, March 2010
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
kwp_1612.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
