Abstract
We present an experimental protocol to examine the relationship between exogenously induced stress and confidence in a setting applicable to financial markets. Confidence will be measured by a prediction interval for a one period ahead price forecast, based on a series of 100 previous prices; narrower (wider) prediction intervals will be indicative of greater (lower) confidence. Stress will be induced using the Cold Pressor Arm Wrap, a variation of the Cold Pressor Test. Risk attitudes, and personality traits are also considered as mediating factors.
Funder
curtin experimental economics lab
mr shead’s student resource consumables fund
Publisher
Public Library of Science (PLoS)
Reference48 articles.
1. Risk aversion and incentive effects;CA Holt;American Economic Review,2002
2. Endogenous steroids and financial risk taking on a London trading floor;JM Coates;Proceedings of the National Academy of Sciences of the United States of America,2008
3. Efficient Capital Markets: A Review of Theory and Empirical Work;EF Fama;The Journal of Finance,1970
4. Efficient Capital Markets: II;EF Fama;The Journal of Finance,1991