Construct · 1 fields · 1 citations

illusion of knowledge: a standalone construct

One name. One construct. A landmark on the map.

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illusion ofknowledge1 CONSTRUCTIllusion of knowledgeBARBER · BEHAVIORAL FINANCE

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Behavioral finance

investors' belief that having more information makes their forecasts more accurate, which raises confidence and trading without improving returns.

In behavioral finance, illusion of knowledge refers to investors' belief that having more information makes their forecasts more accurate, which raises confidence and trading without improving returns. This meaning comes from Barber (2002) in Review of Financial Studies.[1]

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Nearby constructs

belief4 fields · 4 citationsjingle · one word, four constructsconfidence4 fields · 5 citationsjingle · one word, four constructsinformation4 fields · 5 citationsjingle · one word, four constructs

References

  1. Barber, B. M., & Odean, T. (2002). Online Investors: Do the Slow Die First? Review of Financial Studies, 15(2), 455-488. https://doi.org/10.1093/rfs/15.2.455

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