TY  - RPRT
        AU  - Antoniou, Constantinos
AU  - Harrison, Glenn
AU  - Lau, Morten
AU  - Read, Daniel
        TI  - Information Characteristics and Errors in Expectations: Experimental Evidence
        PY  - 2015/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9387
        UR  - https://www.iza.org/publications/dp9387
        AB  - We design an experiment to test the hypothesis that, in violation of Bayes Rule, some people respond more forcefully to the strength of information than to its weight. We provide incentives to motivate effort, use naturally occurring information, and control for risk attitude. We find that the strength-weight bias affects expectations, but that its magnitude is significantly lower than originally reported. Controls for non-linear utility further reduce the bias. Our results suggest that incentive compatibility and controls for risk attitude considerably affect inferences on errors in expectations.
        KW  - experimental finance
KW  - market efficiency
KW  - behavioral biases
        ER  -