FLORIAN PETERS

I am a financial economist. My research spans the areas of behavioral economics and corporate governance... My work in behavioral finance investigates how people form expectations about uncertain future outcomes. In a series of papers I investigate why and how peoples' expectations predictably deviate from the rational benchmark. In "Measuring Under- and Overreaction in Expectation Formation" we develop a method to measure the extent to which people over- or underreact when updating their expectations in light of new information. In "Optimism Propagation" we empirically quantify how irrational beliefs propagate between people who communicate with one another.