Overconfidence and Speculative Bubbles

By Jose A. Scheinkman. Journal of Political Economy, 2003

2,198 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3344079112f6bd4d910a942db745f8815b3fe2ca

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

Do Stock Price Bubbles Influence Corporate Investment (2005, background): “Re nements and extensions have also been examined, including the e¤ect of dynamic speculative trading (Harrison and Kreps, 1978) and the endogenous formation of heterogeneous beliefs (Scheinkman and Xiong, 2003).3 This is the type of stock price bubble on which we focus in this paper.”
Non-commercial Research and Educational Use including without Limitation Use in Instruction at Your Institution, Sending It to Specific Colleagues That You Know, and Providing a Copy to Your Institution's Administrator. All Other Uses, Reproduction and Distribution, including without Limitation Comm (2005, neutral): “A proper choice of this fitness function is of vital importance for the success of the GA convergence.”
Limits of Arbitrage (2010, neutral): “See also the surveys by Fama (1991) and Schwert (2003).”
True Overconfidence: The Inability of Rational Information Processing to Account for Apparent Overconfidence (2011, positive): “…it is related to excessive trading volume (Barber and Odean, 2000; Glaser and Weber, 2007; Odean, 1998), to the emergence of stock market bubbles (Scheinkman and Xiong, 2003; Shiller, 2002), to corporate investment decisions (Gervais, Heaton, and Odean, 2003; Malmendier and Tate, 2005), and to…”
When in Peril, Retrench: Testing the Portfolio Channel of Contagion (2004, neutral): “See for example Harrison and Kreps (1978), Scheinkman and Xiong (2003), and Hong and Stein (2003).”
Short sales, institutional investors and the cross-section of stock returns (2005, neutral): “1 Short-sale constraints also have a number of dynamic implications, which can further amplify mispricing (Harrison and Kreps, 1978; Allen, Morris, and Postlewaite, 1993; Duffie, Gârleanu, and Pedersen, 2002; Scheinkman and Xiong, 2003).”
Groupthink: Collective Delusions in Organizations and Markets (2013, neutral): “(2005), Schrand and Zechman (2008)).”
Investor Attention: Overconfidence and Category Learning (2006, positive): “This result is supported by the empirical studies of Shiller (1989) and Pindyck and Rotemberg (1993) on the comovement between UK and US stock markets and the comovement of individual US stocks.”
The Credit Ratings Game (2012, neutral): “8We provide a somewhat di¤erent (more institution-based) explanation for why di¤erences of opinion arise (see, Harrison and Kreps, 1978, and Scheinkman and Xiong, 2003).”
Model Uncertainty and Option Markets with Heterogeneous Beliefs (2006, background): “Our approach is, however, different from Scheinkman and Xiong (2003) because we consider a dynamic model in which the agent can dynamically hedge and implement state contingent risk sharing contracts.”
Psychology-based Models of Asset Prices and Trading Volume (2018, background): “Scheinkman and Xiong (2003) show how overconfidence-based disagreement and a shortsale constraint can explain this coincidence of overvaluation and high volume.”
Fragile beliefs and the price of uncertainty (2010, background): “Le doute n’est pas une condition agréable, mais la certitude est absurde.1 Voltaire 1767.”
Asset Prices Under Short-Sale Constraints (2006, background): “For example, Harrison and Kreps (1978) and Scheinkman and Xiong (2003) consider models in which investors have heterogeneous beliefs but face short-sale constraints.”
Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premia (2005, background): “Scheinkman and Xiong (2003) offer a continuous-time model that produces this relationship.”
Discussion of “disclosure processing costs, investors' information choice, and equity market outcomes: A review” (2020, result): “Contents lists available at ScienceDirect Journal of Accounting and Economics journal homepage: www.journals .e lsevier .com/ journal-of -accounting-and-economics Discussion of “disclosure processing costs, investors' information choice, and equity market outcomes: A review”* Snehal Banerjee, Bradyn”