Outlier blindness: A neurobiological foundation for neglect of financial risk

• 成果类型: Article
• 署名作者: Payzan-LeNestour, Elise; Woodford, Michael
• 署名单位: University of New South Wales Sydney; Columbia University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.06.019
• 发表日期: 2022
• 页码: 1316-1343
• 关键词: Tail risk; Imprecise perception; Efficient coding; adaptation; Decision making under uncertainty; behavioral finance; Neuroeconomics; experiments

摘要

How do people record information about the outcomes they observe in their environ-ment? Building on a well-established neuroscientific framework, we propose a model in which people are hampered in their perception of outcomes that they expect to seldom encounter. We provide experimental evidence for such outlier blindness and discuss how it provides a microfoundation for neglected tail risk by investors in financial markets. (c) 2021 Elsevier B.V. All rights reserved.