Superior Information or a Psychological Bias? A Unified Framework with Cognitive Abilities Resolves

Abstract

This paper provides a unified explanation for three puzzles identified in the recent retail investor literature: portfolio concentration, excess trading, and preference for local stocks. In each of these three instances, the portfolio distortion could be induced by an informational advantage or psychological biases. Using an ex ante measure of investors… (More)

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Cite this paper

@inproceedings{Puzzles2008SuperiorIO, title={Superior Information or a Psychological Bias? A Unified Framework with Cognitive Abilities Resolves}, author={Three Puzzles and George Korniotis and Alok Kumar and Zoran Ivkovic and Ravi Jagannathan and Aditya Kaul and J Kim and Laura T. Starks and Stathis Tompaidis and Jiang Wang and Akiko Watanabe and Margaret Zhu and Ning Zhu and Hao Zhou}, year={2008} }