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Cambridge Endowment for Research in Finance (CERF)

 

Thies Lindenthal

Title of research: Behavioural Biases as an Indicator for Asset Value Uncertainty

Buyers and sellers of heterogeneous goods in thin  markets are brave: despite the lack of long histories of transactions and the absence  of sufficiently high numbers of comparable sales, they still form opinions on values, agree to trade and thereby serve as trailblazers for subsequent transactions. Without hard data and economic models at hand, these pioneering investors are hypothesized to be more susceptible to behavioural biases and price heuristics than investors in markets where more and better information is available.

This project empirically investigates whether behavioural biases are more widespread in markets with relatively high uncertainty regarding fundamental asset values. As some of these biases are easy to observe, their prevalence can serve as a readily available indicator for asset value uncertainty.

Project Update - August 2019

Project Update - April 2019

Project Update - August 2018

Project Update - April 2018

Project Update - August 2017

Project Update - April 2017

Project Update - July 2016

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For the last 13 years, Cambridge Finance is offering its Best Student Paper Award. The award comprises a cash honorarium of £1,000 and a certificate is awarded to the author of the best student paper in finance presented during the 2020-2021 academic year.