Series: IMF Working Papers
Author(s): Bernhard Eckwert , and Burkhard Drees
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2005
Keywords: Asset pricing, behavioral finance, cognitive dissonance, investors, stock prices, stock market, stock price, financial economics,
The behavior of equity prices is analyzed in a general equilibrium model where agents have preferences not only over consumption but also (implicitly) over their beliefs. To alleviate cognitive dissonance, investor...