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Predicting price intervals under exogenously induced stress.


ABSTRACT: We present an experimental protocol to examine the relationship between exogenously induced stress and confidence in a setting applicable to financial markets. Confidence will be measured by a prediction interval for a one period ahead price forecast, based on a series of 100 previous prices; narrower (wider) prediction intervals will be indicative of greater (lower) confidence. Stress will be induced using the Cold Pressor Arm Wrap, a variation of the Cold Pressor Test. Risk attitudes, and personality traits are also considered as mediating factors.

SUBMITTER: Shead S 

PROVIDER: S-EPMC8460030 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature

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Predicting price intervals under exogenously induced stress.

Shead Steven S   Durand Robert B RB   Thomas Stephanie S  

PloS one 20210923 9


We present an experimental protocol to examine the relationship between exogenously induced stress and confidence in a setting applicable to financial markets. Confidence will be measured by a prediction interval for a one period ahead price forecast, based on a series of 100 previous prices; narrower (wider) prediction intervals will be indicative of greater (lower) confidence. Stress will be induced using the Cold Pressor Arm Wrap, a variation of the Cold Pressor Test. Risk attitudes, and pers  ...[more]

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