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Does the Stock Market Overreact
Research in experimental psychology suggests that, in violation of Bayes' rule, most people tend to "overreact" to unexpected and dramatic news events. This study of market efficiency investigatesExpand
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Toward a positive theory of consumer choice
The economic theory of the consumer is a combination of positive and normative theories. Since it is based on a rational maximizing model it describes how consumers should choose, but it is allegedExpand
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A Survey of Behavioral Finance
Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The field has two building blocks: limits to arbitrage,Expand
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Some empirical evidence on dynamic inconsistency
Abstract Individual discount rates are estimated from survey evidence. For gains, they are found to vary inversely with the size of the reward and the length of time to be waited. Rates are found toExpand
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Labor Supply of New York City Cabdrivers: One Day at a Time
Life-cycle models of labor supply predict a positive relationship between hours supplied and transitory changes in wages. We tested this prediction using three samples of wages and hours of New YorkExpand
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Investor Sentiment and the Closed-End Fund Puzzle
This paper examines the proposition that fluctuations in discounts on closed end funds are driven by changes in individual investor sentiment toward closed end funds and other securities. The theoryExpand
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Naive Diversification Strategies in Defined Contribution Saving Plans
There is a worldwide trend toward defined contribution saving plans and growing interest in privatized Social Security plans. In both environments, individuals are given some responsibility to makeExpand
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An Economic Theory of Self-Control
The concept of self-control is incorporated in a theory of individual intertemporal choice by modeling the individual as an organization. The individual at a point in time is assumed to be both aExpand
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Misbehaving: The Making of Behavioral Economics
Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans-predictable, error-prone individuals. Misbehaving is his arresting,Expand
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Individual Preferences, Monetary Gambles, and Stock Market Participation: A Case for Narrow Framing
We argue that ?narrow framing,? whereby an agent who is offered a new gamble evaluates that gamble in isolation, may be a more important feature of decisionmaking than previously realized. OurExpand
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