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http://hdl.handle.net/10077/10532
Title: | Look ma(rket), No Hands! Optimism Bias and Illusion of Control in Finance Professionals | Authors: | Marcatto, Francesco Colangelo, Giovanni Ferrante, Donatella |
Keywords: | Optimism bias; unrealistic comparative optimism; financial risk; investment risk; perceived control; illusion of control | Issue Date: | 2014 | Publisher: | EUT Edizioni Università di Trieste | Source: | Francesco Marcatto, Giovanni Colangelo, Donatella Ferrante, "Look ma(rket), No Hands! Optimism Bias and Illusion of Control in Finance" in: Paolo Bernardis, Carlo Fantoni, Walter Gerbino (eds.) "TSPC2014. Proceedings of the Trieste Symposium on Perception and Cognition, November 27-28", Trieste, EUT Edizioni Università di Trieste, 2014, pp. 118-120. | Abstract: | The optimism bias is the tendency to judge one’s own risk as less than the risk of others. In the present study we found that also finance professionals (N = 60) displayed an optimism bias when forecasting the return of an investment made by themselves or by a colleague of the same expertise. Using a multidimensional approach to the assessment of risk perception, we found that participants’ forecasts were biased not because they judged negative consequences as less likely for themselves, but because they were overconfident in their ability to avoid and control them. |
Type: | Book Chapter | URI: | http://hdl.handle.net/10077/10532 | eISBN: | 978-88-8303-610-1 |
Appears in Collections: | TSPC2014: Proceedings of the Trieste Symposium on Perception and Cognition, November 27th-28th 2014 |
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