How Riskily Do I Invest? The Role of Risk Attitudes, Risk Perceptions, and Overconfidence

References

• Alpert M., Raiffa H., Kahneman D., Slovic P., Tversky A. A progress report on the training of probability assessors. Judgment Under Uncertainty: Heuristics and Biases (1982) (Cambridge University Press, Cambridge, UK) 294–305Crossref, Google Scholar
• Balzer W. K., Doherty M. E., O'Connor R. The effects of cognitive feedback on performance. Psych. Bull. (1989) 106(3):410–433Crossref, Google Scholar
• Barsky R. B., Juster F. T., Kimball M. S., Shapiro M. D. Preference parameters and behavioral heterogeneity: An experimental approach in the health and retirement study. Quart. J. Econom. (1997) 112(2):537–579Crossref, Google Scholar
• Baucells M., Rata C. A survey study of factors influencing risk-taking behavior in real-world decisions under uncertainty. Decision Anal. (2006) 3(3):163–176Link, Google Scholar
• Ben-David I., Graham J. R., Harvey C. Managerial overconfidence and corporate policies. (2007) . Working paper, National Bureau of Economic Research, Cambridge, MACrossref, Google Scholar
• Blais A. R., Weber E. U. Domain-specific risk-taking (dospert) scale for adult populations. Judgment Decision Making (2006) 1(1):33–47Google Scholar
• Camerer C. F., Hogarth R. M. The effects of financial incentives in experiments: A review and capital-labor-production framework. J. Risk Uncertainty (1999) 19(1):7–42Crossref, Google Scholar
• Cesarini D., Sandewall Ö., Johannesson M. Confidence interval estimation tasks and the economics of overconfidence. J. Econom. Behav. Organ. (2006) 61(3):453–470Crossref, Google Scholar
• Coval J. D., Thakor A. V. Financial intermediation as a beliefs-bridge between optimists and pessimists. J. Financial Econom. (2005) 75(3):535–569Crossref, Google Scholar
• Daniel K. D., Hirshleifer D., Subrahmanyam A. Overconfidence, arbitrage, and equilibrium asset pricing. J. Finance (2001) 56(3):921–965Crossref, Google Scholar
• Diacon S., Hasseldine J. Framing effects and risk perception: The effect of prior performance presentation format on investment fund choice. J. Econom. Psych. (2007) 28(1):31–52Crossref, Google Scholar
• Dohmen T., Falk A., Huffman D., Sunde U., Schupp J., Wagner G. G. Individual risk attitudes: Measurement, determinants and behavioral consequences. J. Eur. Econom. Assoc. (2010) . ForthcomingGoogle Scholar
• Donkers B., Melenberg B., van Soest A. Estimating risk attitudes using lotteries: A large sample approach. J. Risk Uncertainty (2001) 22(2):165–195Crossref, Google Scholar
• Dorn D., Huberman G. Talk and action: What individual investors say and what they do. Rev. Finance (2005) 9(4):437–481Crossref, Google Scholar
• Eckel C. C., Grossman P. J., Plott C. R., Smith V. L. Men, women and risk aversion: Experimental evidence. Handbook of Experimental Economics Results (2008) (Elsevier Press, New York) 1061–1073Chap. 113Crossref, Google Scholar
• European Parliament and European Council Markets in financial instruments directive. (2004) . Directive 2004/39/EC, the European Parliament and the European CouncilGoogle Scholar
• European Parliament and European Council Markets in financial instruments directive: Implementing directive. (2006) . Commission Directive 2006/73/EC, the European Parliament and the European CouncilGoogle Scholar
• Glaser M., Weber M. Overconfidence and trading volume. Geneva Risk Insurance Rev. (2007) 32(1):1–36Crossref, Google Scholar
• Glaser M., Langer T., Weber M. Overconfidence of professionals and laymen: Individual differences within and between tasks? (2005) . Working paper, University of Mannheim, Mannheim, GermanyGoogle Scholar
• Glaser M., Langer T., Reynders J., Weber M. Framing effects in stock market forecasts: The difference between asking for prices and asking for returns. Rev. Finance (2007) 11(2):325–357Crossref, Google Scholar
• Goldstein D. G., Johnson E. J., Sharpe W. F. Choosing outcomes versus choosing products: Consumer-focused retirement investment Advice. J. Consumer Res. (2008) 35(3):440–456Crossref, Google Scholar
• Graham J. R., Harvey C. The long-run equity risk premium. Finance Res. Lett. (2005) 2(4):185–194Crossref, Google Scholar
• Guiso L., Paiella M., Chiappori P.-A., Gollier C. The Role of risk aversion in predicting individual behavior. Competitive Failures in Insurance Markets: Theory and Policy Implications (2006) (MIT Press, Cambridge, MA) 213–250Google Scholar
• Hanoch Y., Johnson J. G., Wilke A. Domain specificity in experimental measures and participant recruitment an application to risk-taking behavior. Psych. Sci. (2006) 17(4):300–304Crossref, Google Scholar
• Hirshleifer D., Luo G. Y. On the survival of overconfident traders in a competitive securities market. J. Financial Markets. (2001) 4(1):73–84Crossref, Google Scholar
• Jia J., Dyer J. S., Butler J. C. Measures of perceived risk. Management Sci. (1999) 45(4):519–532Link, Google Scholar
• Johnson J. G., Wilke A., Weber E. U. Beyond a trait view of risk taking: A domain-specific scale meausuring risk perceptions, expected benefits, and perceived-risk attitudes in German-speaking populations. Polish Psych. Bull. (2004) 35(3):153–163Google Scholar
• Kapteyn A., Teppa F. Subjective measures of risk aversion and portfolio choice. (2002) . CentER Discussion Paper 2002-11, Tilburg University, Tilburg, The NetherlandsGoogle Scholar
• Keefer D. L., Bodily S. E. Three-point approximations for continuous random variables. Management Sci. (1983) 29(5):595–609Link, Google Scholar
• Klos A., Weber M. Experimental evidence on the relationship between common measures of risk aversion and portfolio choice. (2003) . Working paper, University of Mannheim, Mannheim, GermanyGoogle Scholar
• Klos A., Weber E. U., Weber M. Investment decisions and time horizon: Risk perception and risk behavior in repeated gambles. Management Sci. (2005) 51(12):1777–1790Link, Google Scholar
• Krahnen J. P., Rieck C., Theissen E. Inferring risk attitudes from certainty equivalents: Some lessons from an experimental Study. J. Econom. Psych. (1997) 18(5):469–486Crossref, Google Scholar
• Lawrence M., O'Connor M. Scale, variability, and the calibration of judgmental prediction intervals. Organ. Behav. Human Decision Processes (1993) 56(3):441–458Crossref, Google Scholar
• Lichtenstein S., Slovic P.The Construction of Preferences (2006) (Cambridge University Press, New York) Crossref, Google Scholar
• MacCrimmon K. R., Wehrung D. A. Measuring risk in natural situations and attitudes. Taking Risks (1986) (Free Press, New York) 207–240Chap. 9Google Scholar
• Menkhoff L., Schmidt U., Brozynski T. The impact of experience on risk taking, overconfidence, and herding of fund managers: Complementary survey evidence. Eur. Econom. Rev. (2006) 50(7):1753–1766Crossref, Google Scholar
• Moore D. A., Healy P. J. The trouble with overconfidence. Psych. Rev. (2008) 115(2):502–517Crossref, Google Scholar
• Nunnally J. C.Psychometric Theory (1978) (McGraw-Hill, New York) Google Scholar
• Odean T. Volume, Volatility, price, and profit: When all traders are above average. J. Finance (1998) 53(6):1887–1934Crossref, Google Scholar
• Pennings J. M. E., Wansink B. Channel contract behavior: The role of risk attitudes, risk perceptions, and channel members' market structures. J. Bus. (2004) 77(4):697–723Crossref, Google Scholar
• Petersen M. A. Estimating standard errors in finance panel data sets: Comparing approaches. Rev. Financial Stud. (2009) 22(1):435–480Crossref, Google Scholar
• Rettinger D. A., Hastie R. Content effects on decision making. Organ. Behav. Human Decision Processes (2001) 85(2):336–359Crossref, Google Scholar
• Russo J. E., Schoemaker P. J. H. Managing overconfidence. MIT Sloan Management Rev. (1992) 33(2):7–17Google Scholar
• Samuelson P. A. Lifetime portfolio selection by dynamic stochastic programming. Rev. Econom. Statist. (1969) 51(3):239–246Crossref, Google Scholar
• Sarin R., Weber M. Risk-value models. Eur. J. Oper. Res. (1993) 70(2):135–149Crossref, Google Scholar
• Tversky A., Kahneman D. Advances in prospect theory: Cumulative representation of uncertainty. J. Risk Uncertainty (1992) 5(4):297–323Crossref, Google Scholar
• Vrecko D., Klos A., Langer T. Impact of presentation format and self-reported risk aversion on revealed skewness preferences. Decision Anal. (2009) 6(2):57–74Link, Google Scholar
• Wärneryd K.-E. Risk attitudes and risky behavior. J. Econom. Psych. (1996) 17(6):749–770Crossref, Google Scholar
• Weber E. U., Hsee C. Cross-cultural differences in risk perception, but cross-cultural similarities in attitudes towards perceived risk. Management Sci. (1998) 44(9):1205–1217Link, Google Scholar
• Weber E. U., Milliman R. A. Perceived risk attitudes: Relating risk perception to risky choice. Management Sci. (1997) 43(2):123–144Link, Google Scholar
• Weber E. U., Blais A.-R., Betz N. E. A domain-specific risk-attitude scale: Measuring risk perceptions and risk behaviors. J. Behav. Decision Making (2002) 15(4):263–290Crossref, Google Scholar
• Weber E. U., Shafir S., Blais A.-R. Predicting risk-sensitivity in humans and lower animals: Risk as variance or coefficient of variation. Psych. Rev. (2004) 111(2):430–445Crossref, Google Scholar
• Weber E. U., Siebenmorgen N., Weber M. Communicating asset risk. Risk Anal. (2005) 25(3):597–609Crossref, Google Scholar
• Wooldridge J. M. Cluster-sample methods in applied econometrics. Amer. Econom. Rev. (2003) 93(2):133–138Crossref, Google Scholar