Anchoring and Overconfidence: The Influence of Culture and Cognitive Abilities

Acker, D., Duck, N. W. (2008), Cross-cultural overconfidence and biased self-attribution, The Journal of Socio-Economics, No. 37, pp. 1815–1824Search in Google Scholar

Aggarwal, R., Goodell, J. W. (2014), National cultural dimensions in finance and accounting scholarship: an important gap in the literatures? Journal of Behavioral and Experimental Finance, No. 1, pp. 1–12.Search in Google Scholar

Antonczyk, R. C., Salzmann, A. J. (2014), Overconfidence and optimism: the effect of national culture on capital structure, Research in International Business and Finance, No. 31, pp. 32–151.Search in Google Scholar

Ariely, D., Loewenstein, G., Prelec, D. (2003), Coherent arbitrariness: stable demand curves without stable preferences, The Quarterly Journal of Economics, No. 118, pp. 73–105.10.1162/00335530360535153Open DOISearch in Google Scholar

Barber, B. M., Odean, T. (2001), Boys will be boys: gender, overconfidence, and common stock investment, Quarterly Journal of Economics, No. 116 (1), pp. 261–292.Search in Google Scholar

Bergman, O., Ellingsen, T., Johannesson, M., Svensson, C. (2010), Anchoring and cognitive ability, Economics Letters, No. 107 (1), pp. 66–68.Search in Google Scholar

Breuer, W., Quinten, B. (2009), Cultural finance, SSRN eLibrary, available at: http://dx.doi.org/10.2139/ssrn.1282068 (20.01.2015).10.2139/ssrn.1282068(20.01.2015)Open DOISearch in Google Scholar

Camerer, C., Lovallo, D. (1999), Overconfidence and excess entry: an experimental approach, The American Economic Review, No. 89 (1), pp. 306–318.Search in Google Scholar

Campitelli, G., Gerrans, P. (2013), Does the cognitive reflection test measure cognitive reflection? A mathematical modeling approach, Memory and Cognition, No. 42 (3), pp. 434–447.10.3758/s13421-013-0367-9Open DOISearch in Google Scholar

Cervone, D., Peake, P. K. (1986), Anchoring, efficacy, and action: the influence of judgmental heuristics on self-efficacy judgments and behavior, Journal of Personality and Social Psychology, No. 50, pp. 492–501.10.1037/0022-3514.50.3.492Open DOISearch in Google Scholar

Chapman, G. B., Johnson, E. J. (1999), Anchoring, activation, and the construction of values, Organizational Behavior and Human Decision Processes, No. 79, pp. 1–39.Search in Google Scholar

Cheek, N. N., Norem, K. (2016), Holistic thinkers anchor less: exploring the roles of self-construal and thinking styles in anchoring susceptibility, Personality and Individual Differences, available at: http://www.sciencedirect.com/science/article/pii/S0191886916300356 (14.04.2016).Search in Google Scholar

Choi, I., Koo, M., Choi, J. A. (2007), Individual differences in analytic versus holistic thinking, Personality and Social Psychology Bulletin, No. 33, pp. 691–705.10.1177/0146167206298568Open DOISearch in Google Scholar

Chui, A., Titman, S., Wei, K. (2010), Individualism and momentum around the world, Journal of Finance, No. 65 (1), pp. 361–392.Search in Google Scholar

Critcher, C. R., Gilovich, T. (2008), Incidental environmental anchors, Journal of Behavioral Decision Making, No. 21, pp. 241–251.10.1002/bdm.586Open DOISearch in Google Scholar

Czerwonka, M. (2014), The influence of religion on socially responsible investing, Journal of Religion and Business Ethics, No. 3 (1), p. 21.Search in Google Scholar

Daniel, K. D., Hirshleifer, D., Subrahmanyam, A. (2001), Overconfidence, arbitrage, and equilibrium asset pricing, The Journal of Finance, No. 56 (3), pp. 921–965.10.1111/0022-1082.00350Open DOISearch in Google Scholar

Duttle, K., Inukai, K. (2015), Complexity aversion: influences of cognitive abilities, culture and system of thought, Economic Bulletin, No. 35 (2), pp. 846–855.Search in Google Scholar

Englich, B., Mussweiler, T. (2001), Sentencing under uncertainty: anchoring effects in the courtroom, Journal of Applied Social Psychology, No. 31, pp. 1535–1551.10.1111/j.1559-1816.2001.tb02687.xOpen DOISearch in Google Scholar

Englich, B., Mussweiler, T., Strack, F. (2006), Playing dice with criminal sentences: the influence of irrelevant anchors on experts’ judicial decision making, Personality and Social Psychology Bulletin, No. 32, pp. 188–200.10.1177/0146167205282152Open DOISearch in Google Scholar

Epley, N., Gilovich, T. (2001), Putting adjustment back into the anchoring and adjustment heuristic: differential processing of self-generated and experimenter-provided anchors, Psychological Science, No. 12, pp. 391–396.10.1111/1467-9280.00372Open DOISearch in Google Scholar

Epley, N., Gilovich, T. (2005), When effortful thinking influences judgmental anchoring: differential effects of forewarning and incentives on self-generated and externally provided anchors, Journal of Behavioral Decision Making, No. 18, pp. 199–212.10.1002/bdm.495Open DOISearch in Google Scholar

Frederick, S. (2005), Cognitive reflection and decision making, Journal of Economics Perspectives, No. 19 (4), pp. 25–42.Search in Google Scholar

Frijns, B., Gilbert, A., Lehnert, T., Tourani-Rad, A. (2013), Uncertainty avoidance, risk tolerance and corporate takeover decisions, Journal of Banking and Finance, No. 37 (7), pp. 2457–2471.Search in Google Scholar

Furnham, A., Boo, H. Ch., (2011), A literature review of the anchoring effect, The Journal of Socio-Economics, No. 40, pp. 35–42.Search in Google Scholar

Galinsky, A. D., Mussweiler, T. (2001), First offers as anchors: the role of perspective-taking and negotiator focus, Journal of Personality and Social Psychology, No. 81, pp. 657–669.10.1037/0022-3514.81.4.657Open DOISearch in Google Scholar

Gigerenzer, G. (1996), On narrow norms and vague heuristics: a reply to Kahneman and Tversky (1996), Psychological Review, No. 103 (3), pp. 592–596.Search in Google Scholar

Guiso, L., Sapienza, P., Zingales, L. (2006), Does culture affect economic outcomes? Journal of Economic Perspectives, No. 20, pp. 23–48.10.1257/jep.20.2.23Open DOISearch in Google Scholar

Hackbarth, D. (2008), Managerial traits and capital structure decisions, Journal of Financial and Quantitative Analysis, No. 43, pp. 843–882.10.1017/S002210900001437XOpen DOISearch in Google Scholar

Heaton, J. B. (2002), Managerial optimism and corporate finance, Financial Management, No. 31, pp. 33–45.10.2307/3666221Open DOISearch in Google Scholar

Hofstede, G., Hofstede, G. J., Minkov, M. (2010), Cultures and organizations: software of the mind, 3^rd Edition, McGraw-Hill Education, New York.Search in Google Scholar

Hoppe, E. I., Kusterer, D. J. (2011), Behavioral biases and cognitive reflection, Economics Letters, No. 110 (2), pp. 97–100.Search in Google Scholar

Jacowitz, K. E., Kahneman, D. (1995), Measures of anchoring in estimation tasks, Personality and Social Psychology Bulletin, No. 21, pp. 1161–1166.10.1177/01461672952111004Open DOISearch in Google Scholar

Jlassi, M., Naoui, K., Mansour, W. (2014), Overconfidence behavior and dynamic market volatility: evidence from international data, Procedia Economics and Finance, No. 13, pp. 128–142.Search in Google Scholar

Kahneman, D. (2011), Thinking fast and slow, Farrar, Straus and Giroux, New York.Search in Google Scholar

Kahneman, D., Tversky, A. (1996), On the reality of cognitive illusions, Psychological Review, No. 103 (3), pp. 582–591.Search in Google Scholar

Kahneman, D., Tversky, A. (1977), Intuitive prediction: biases and corrective procedures, available at: http://www.dtic.mil/dtic/tr/fulltext/u²/a047747.pdf (12.09.2015).Search in Google Scholar

Kahneman, D., Tversky, A. (1979), Prospect theory: an analysis of decisions under risk, Econometrica, No. 47 (2), pp. 263–292.10.2307/1914185Open DOISearch in Google Scholar

Kahneman, D., Tversky, A. (1984), Choices, values and frames, American Psychologist, No. 39 (4), pp. 341–350.10.1037/0003-066X.39.4.341Open DOISearch in Google Scholar

Klayman, J., Soll, J. B., Gonzalez-Vallejo, C., Barlas, S. (1999), Overconfidence: it depends on how, what, and whom you ask, Organizational Behavior and Human Decision Processes, No. 79 (3), pp. 216–247.10.1006/obhd.1999.2847Open DOISearch in Google Scholar

Kwok, C., Tadesse, S. (2006), National culture and financial systems, Journal of International Business Studies, No. 37 (2), pp. 227–247.10.1057/palgrave.jibs.8400188Open DOISearch in Google Scholar

Larrick, R. P., Burson, K. A., Soll, J. B. (2007), Social comparison and confidence: when thinking you’re better than average predicts overconfidence (and when it does not), Organizational Behaviour and Human Decision Processes, No. 102 (1), pp. 76–94.Search in Google Scholar

Levinson, J. D., Peng, K. (2007), Valuing cultural differences in behavioral economics, The ICFAI Journal of Behavioral Finance, No. 4 (1), pp. 32–47.Search in Google Scholar

Malmendier, U., Tate, G. (2005), CEO overconfidence and corporate investment, The Journal of Finance, No. 60 (6), pp. 2661–2700.10.1111/j.1540-6261.2005.00813.xOpen DOISearch in Google Scholar

Markus, H. R., Kitayama, S. (1991), Culture and the self: implications for cognition, emotion, and motivation, Psychological Review, No. 98, pp. 224–253.Search in Google Scholar

Moore, D. A., Healy, P. J. (2008), The trouble with overconfidence, Psychological Review, No. 115 (2), p. 502.Search in Google Scholar

Nisbett, R. E., Peng, K., Choi, I., Norenzayan, A. (2001), Culture and systems of thought: holistic versus analytic cognition, Psychological Review, No. 108, pp. 291–310.Search in Google Scholar

Nisbett, R. E., Masuda T. (2003), Culture and point of view, Proceedings of the National Academy of Sciences of the United States of America, No. 100 (19), pp. 11163–11170.10.1073/pnas.1934527100Open DOISearch in Google Scholar

Oechssler, J., Roider, A., Schmitz, P. W. (2009), Cognitive abilities and behavioural biases, Journal of Economic Behavior & Organization, No. 72 (1), pp. 147–152.Search in Google Scholar

Oskamp, S. (1965), Overconfidence in case-study judgments, Journal of consulting psychology, No. 29 (3), pp. 261–265.Search in Google Scholar

Pennycook, G., Cheyne, J. A., Koehler, D. J., Fugelsang, J. A. (2016), Is the cognitive reflection test a measure of both reflection and intuition? Behav Res Methods, No. 48 (1), pp. 341–348.10.3758/s13428-015-0576-1Open DOISearch in Google Scholar

Rzeszutek, M. (2015), Personality traits and susceptibility to behavioral biases among a sample of Polish stock market investors, International Journal of Management and Economics, No. 47 (1), pp. 71–81.Search in Google Scholar

Scheinkman, J. A., Xiong, W. (2003), Overconfidence and Speculative Bubbles, Journal of Political Economy, No. 111 (6), pp. 1183–1220.Search in Google Scholar

Siegel, J. I., Licht, A. N., Schwartz, S. H. (2011), Egalitarianism and international investment, Journal of Financial Economics, No. 102 (3), pp. 621–642.10.1016/j.jfineco.2011.05.010Open DOISearch in Google Scholar

Soll, J. B., Klayman J., (2004), Overconfidence in interval estimates, Journal of Experimental Psychology. Learning, Memory and Cognition, No. 30 (2), pp. 299–314.10.1037/0278-7393.30.2.299Open DOISearch in Google Scholar

Stewart, N. (2009), The cost of anchoring on credit-card minimum repayments, Psychological Science, No. 20, pp. 39–41.10.1111/j.1467-9280.2008.02255.xOpen DOISearch in Google Scholar

Toplak, M. E., West, R. F., Stanovich, K. E. (2011), The cognitive reflection test as a predictor of performance on heuristics and biases tasks, Memory & Cognition, No. 39, pp. 1275–1289.Search in Google Scholar

Toplak, M. E., West, R. F., Stanovich, K. E. (2014), Assessing miserly information processing: an expansion of the cognitive reflection test, Thinking and Reasoning, No. 20, pp. 147–168.Search in Google Scholar

Tversky, A., Kahneman, D. (1974), Judgment under uncertainty: heuristics and biases, Science. New Series, No. 185 (4157), pp. 1124–1131.Search in Google Scholar

Wang, M., Fischbeck, P. S. (2004), Similar in how to frame, but different in what to choose, Marketing Bulletin, No. 15, pp. 1–12.Search in Google Scholar

Yates, J. F., Lee, J.-W. (1996), Chinese decision making, in: M. H. Bond (Ed.), Handbook of chinese psychology, Oxford University Press, Hong Kong, pp. 338–351.Search in Google Scholar

Yates, J. F., Lee, J.-W., Shinotsuka, H. (1996), Beliefs about overconfidence, including its cross-national variation, Organizational Behavior and Human Decision Processes, No. 65, pp. 138–147.10.1006/obhd.1996.0012Open DOISearch in Google Scholar

Yates, J. F., Lee, J.-W., Bush, J. G. (1997), General knowledge overconfidence: cross-national variations, response style and ‘reality’, Organizational Behavior and Human Decision Processes, No. 70, pp. 87–94.10.1006/obhd.1997.2696Open DOISearch in Google Scholar

Zheng, X., El Ghoul, S., Guedhami, O., Kwok, C. C. Y. (2012), National culture and corporate debt maturity, Journal of Banking and Finance, No. 36 (2), pp. 468–488.Search in Google Scholar

Zingales, L. (2015), The “cultural revolution” in finance, Journal of Financial Economics, No. 117, pp. 1–4.Search in Google Scholar