Construct · 1 fields · 1 citations

nominal price illusion: a standalone construct

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

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nominal priceillusion1 CONSTRUCTNominal price illusionBIRRU · BEHAVIORAL FINANCE

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Behavioral finance

investors' belief that low-priced shares have more room to rise, leading them to overestimate the upside of cheap stocks.

In behavioral finance, nominal price illusion refers to investors' belief that low-priced shares have more room to rise, leading them to overestimate the upside of cheap stocks. This meaning comes from Birru (2016) in Journal of Financial Economics.[1]

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Nearby constructs

belief4 fields · 4 citationsjingle · one word, four constructsleading1 fields · 1 citationsanchor · a standalone constructnominal2 fields · 2 citationsjingle · one word, two constructs

References

  1. Birru, J., & Wang, B. (2016). Nominal price illusion. Journal of Financial Economics, 119(3), 578-598. https://doi.org/10.1016/j.jfineco.2016.01.027

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