Jürgen Huber|Stefan Palan|Stefan Zeisberger
Does investor risk perception drive asset prices in markets? Experimental evidence
Universität Innsbruck|Universität Innsbruck|University of Graz|Radboud University Nijmegen|University of Zurich
explore individual risk perception influences prices trading behavior market setting specifically study lets experimental participants trade assets characterized varying shapes return distributions common meanvariance models predict identical prices assets find trading prices differ significantly assets perceived less risky average despite identical volatility trade significantly higher prices individually traders perceive certain asset less risky also net buyers average regard different risk measures results show probability loss strongest predictor transaction prices risk perception results hold also experienced traders traders trade two assets time