WP 2015-05 Information Characteristics and Errors in Expectations: Experimental Evidence

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Published in 2017 in Journal of Financial and Quantitative Analysis, Volume 52, Issue 2.

ABSTRACT: 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… more »