
Is there a pessimistic bias in individual beliefs ? Evidence from survey data
Napp, Clotilde; Jouini, Elyès; Ben Mansour, Selima (2006), Is there a pessimistic bias in individual beliefs ? Evidence from survey data, European Financial Management Symposium, 2006-04, Durham, Royaume-Uni
View/ Open
Type
Communication / ConférenceDate
2006Conference title
European Financial Management SymposiumConference date
2006-04Conference city
DurhamConference country
Royaume-UniPages
32
Metadata
Show full item recordAbstract (EN)
The aim of this paper is to determine whether individuals exhibit a behavioral bias towards pessimism in their beliefs, in a lottery or more generally in an investment opportunities framework. For this purpose, we design a field survey on a sample of 1,540 individuals aiming at deriving a measure of pessimism from answers to hypothetical scenarios. In the context of our experiment, we observe that individuals are on average pessimistic. We analyze how pessimism is distributed among individuals, in particular in link with gender, age and income. We also analyze how our notion of pessimism is related to more general notions of pessimism already introduced in psychology. We finally estimate the possible impact of this pessimistic bias on the financial markets equilibrium risk premium.Subjects / Keywords
pessimism; lottery; judged probabilityRelated items
Showing items related by title and author.
-
Napp, Clotilde; Jouini, Elyès; Ben Mansour, Selima (2006) Communication / Conférence
-
Jouini, Elyès; Ben Mansour, Selima; Napp, Clotilde (2006) Article accepté pour publication ou publié
-
Napp, Clotilde; Jouini, Elyès; Ben Mansour, Selima (2006) Communication / Conférence
-
Heterogeneous beliefs and asset pricing : an analysis in terms of pessimism, doubt and risk aversion Jouini, Elyès; Ben Mansour, Selima; Napp, Clotilde (2006) Communication / Conférence
-
Ben Mansour, Selima; Jouini, Elyès; Marin, Jean-Michel; Napp, Clotilde; Robert, Christian P. (2006) Communication / Conférence