Unleashing Animal Spirits: Self-Control and Overpricing in Experimental Asset Markets

• 成果类型: Article
• 署名作者: Kocher, Martin G.; Lucks, Konstantin E.; Schindler, David
• 署名单位: University of Vienna; University of Gothenburg; University of Munich; Tilburg University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy109
• 发表日期: 2019
• 页码: 2149
• 关键词: ego-depletion; cognitive reflection; CONTROL STRENGTH; RISK; performance; bubbles; MODEL; expectations; RESOURCES; willpower

摘要

One explanation for overpricing on asset markets is a lack of traders' self-control. We implement the first experiment to address the causal relationship between self-control and systematic overpricing on financial markets. Our setup detects some of the channels through which low individual self-control could transmit into irrational exuberance in markets. Our data indicate a large direct effect of reduced self-control on market overpricing. Low self-control traders report stronger emotions after the market.