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Record W2910780493 · doi:10.5539/ijef.v11n2p50

Confirmation Bias in Investments

2018· article· en· W2910780493 on OpenAlexvenueno aff
Chu Xin Cheng

Bibliographic record

VenueInternational Journal of Economics and Finance · 2018
Typearticle
Languageen
FieldDecision Sciences
TopicDecision-Making and Behavioral Economics
Canadian institutionsnot available
FundersEurostars
KeywordsConfirmation biasInvestment (military)Disposition effectInvestment decisionsNegative informationEconomicsInside informationBusinessPositive economicsMicroeconomicsMonetary economicsFinancial economicsActuarial sciencePsychologySocial psychologyBehavioral economicsLawPolitical science

Abstract

fetched live from OpenAlex

Investors exhibit some well documented mistakes, such as the disposition effect and excessive trading. One potential explanation of these phenomena is confirmation bias. People are inclined to be attached to their investment thesis and are unwilling to consider or accept evidence that they are wrong. Thus, they make speculative bets and hold onto them even as they show a downward trend. Confirmation bias may result from people selectively acquiring information that allows them to continue believing what they initially believe. I investigated selective information acquisition among investors with an experiment that gave participants the choice to read an article supporting an investment they previously made or one opposing it. I discovered that investors are significantly more likely to read the article that is supportive of their decision rather than the article that opposed the investment they had chosen. This suggests that investors exhibit selective information seeking, which could be a source of confirmation bias and is thus a plausible explanation for the investor mistakes previously discussed.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Other design · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.960
Threshold uncertainty score0.221

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.001
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.198
GPT teacher head0.404
Teacher spread0.205 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designOther design
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations15
Published2018
Admission routes1
Has abstractyes

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