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Do Behavioral Biases Affect Prices?
dc.contributor.authorCoval, Joshua D.en_US
dc.contributor.authorShumway, Tyleren_US
dc.date.accessioned2015-11-12T21:03:57Z
dc.date.available2015-11-12T21:03:57Z
dc.date.issued2005-02en_US
dc.identifier.citationCoval, Joshua D. ; Shumway, Tyler (2005). "Do Behavioral Biases Affect Prices?." The Journal of Finance 60(1).en_US
dc.identifier.issn0022-1082en_US
dc.identifier.issn1540-6261en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/115930
dc.description.abstractThis paper documents strong evidence for behavioral biases among Chicago Board of Trade proprietary traders and investigates the effect these biases have on prices. Our traders appear highly loss‐averse, regularly assuming above‐average afternoon risk to recover from morning losses. This behavior has important short‐term consequences for afternoon prices, as losing traders actively purchase contracts at higher prices and sell contracts at lower prices than those that prevailed previously. However, the market appears to distinguish these risk‐seeking trades from informed trading. Prices set by loss‐averse traders are reversed significantly more quickly than those set by unbiased traders.en_US
dc.publisherBlackwell Publishing, Inc.en_US
dc.publisherWiley Periodicals, Inc.en_US
dc.titleDo Behavioral Biases Affect Prices?en_US
dc.typeArticleen_US
dc.rights.robotsIndexNoFollowen_US
dc.subject.hlbsecondlevelFinanceen_US
dc.subject.hlbtoplevelBusiness and Economicsen_US
dc.description.peerreviewedPeer Revieweden_US
dc.contributor.affiliationum2University of Michigan Business Schoolen_US
dc.contributor.affiliationother1Harvard Business Schoolen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/115930/1/jofi723.pdf
dc.identifier.doi10.1111/j.1540-6261.2005.00723.xen_US
dc.identifier.sourceThe Journal of Financeen_US
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dc.owningcollnameInterdisciplinary and Peer-Reviewed


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