An Experimental Test of the Impact of Overconfidence and Gender on Trading Activity

We perform an asset market experiment in order to test the central result coming from the new overconfidence models, namely that high levels of overconfidence lead to enhanced trading activity. We find that overconfidence does engender additional trade. Unlike previous experimental or survey-based evidence, ours is the first study to find this to be so when overconfidence is measured using a calibration-based approach that is most akin to the …