Overconfidence and market efficiency with heterogeneous agents

DOI10.1007/S00199-005-0048-4zbMATH Open1109.91351OpenAlexW2137108136MaRDI QIDQ868599FDOQ868599

Authors Diego García, Francesco Sangiorgi, Branko Urosevic

Publication date 6 March 2007

Published in Economic Theory (Search for Journal in Brave)

Full work available at URL http://hdl.handle.net/10230/822

zbMATH Keywords

Rational expectationsInformation acquisitionPartially revealing equilibriaPrice informativeness

Mathematics Subject Classification ID

Auctions, bargaining, bidding and selling, and other market models (91B26)

Recommendations

• Overconfidence on public information
• Overconfidence in the markets for lemons
• The possibility of informationally efficient markets
• Bounded Rationality and Asset Pricing with Intermediate Consumption*
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Cites work

• A model of rational bias in self-assessments
• A monopolistic market for information
• Boys will be boys: Gender, overconfidence, and common stock investment
• Continuous Auctions and Insider Trading
• Efficient markets and Bayes' rule
• Information Acquisition in a Noisy Rational Expectations Economy
• Mistaken self-perception and equilibrium
• On the aggregation of information in competitive markets
• Viable allocations of information in financial markets

Cited in

(13)

• Firms can benefit from inaccurate market beliefs
• Overstatement and rational market expectation
• Concentrated trading and the survival of overconfident traders
• Optimism and firm formation
• Voluntary information disclosure with heterogeneous beliefs
• Financial reporting and market efficiency with extrapolative investors
• Human capital accumulation and the evolution of overconfidence
• Biased learning creates overconfidence
• Salesforce contract design, joint pricing and production planning with asymmetric overconfidence sales agent
• Bounded rationality, asymmetric information and mispricing in financial markets
• Simultaneous over- and underconfidence: Evidence from experimental asset markets
• Overconfidence in the markets for lemons
• Overconfidence on public information

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