Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/32188 
Year of Publication: 
2005
Series/Report no.: 
CoFE Discussion Paper No. 05/10
Publisher: 
University of Konstanz, Center of Finance and Econometrics (CoFE), Konstanz
Abstract: 
As a group, market forecasters are egregiously overconfident. In conformity to the dynamic model of overconfidence of Gervais and Odean (2001), successful forecasters have become more overconfident. What's more, more experienced forecasters have learned to be overconfident, and hence are more susceptible to this behavioral flaw than their less experienced peers . It is not just individuals who are affected. Markets also become more overconfident when market returns have been high.
Document Type: 
Working Paper

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