{"id":1942,"date":"2026-09-12T04:52:27","date_gmt":"2026-09-12T04:52:27","guid":{"rendered":"http:\/\/ashadocs.org\/experiments\/experiment-camerer-loewenstein-weber-illusion\/"},"modified":"2026-09-12T04:52:27","modified_gmt":"2026-09-12T04:52:27","slug":"experiment-camerer-loewenstein-weber-illusion","status":"publish","type":"psych_experiment","link":"https:\/\/ashadocs.org\/?psych_experiment=experiment-camerer-loewenstein-weber-illusion","title":{"rendered":"Experiment &#8211; Colin Camerer, George Loewenstein, and Martin Weber The Illusion of"},"content":{"rendered":"<p><span class=\"arabpsy-eq\" dir=\"ltr\">[ Nature Selects State S_k from S = {s_1, s_2, &#8230;, s_n} ]<\/span><br \/>\n                                   |<br \/>\n         +&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+<br \/>\n         |                                                   |<br \/>\n         v                                                   v<br \/>\n [ Informed Cohort ]                                 [ Uninformed Cohort ]<br \/>\n Receives Private Signal I_F                         Operates Solely on Prior I_U<br \/>\n (Observes exact or high-precision realization)      (Observes only baseline distribution)<br \/>\n         |                                                   |<br \/>\n         v                                                   v<br \/>\n Task A: Elicitation of Second-Order Beliefs         Task B: Estimation of Asset Value<br \/>\n &#8220;What will the uninformed guess?&#8221;                   &#8220;What is the asset worth?&#8221;<br \/>\n         |                                                   |<br \/>\n         +&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+<br \/>\n                                   |<br \/>\n                                   v<br \/>\n             [ Continuous Double Oral Auction Market ]<br \/>\n             Direct interaction via bids, asks, and execution<br \/>\n             <span class=\"arabpsy-eq\" dir=\"ltr\">Testing whether market prices reflect alpha > 0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A comprehensive academic analysis of the seminal experiment by Camerer, Loewenstein, and Weber on the curse of knowledge and cognitive illusions in markets.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[745,7731],"tags":[6762,6196,6198,2638,6197],"class_list":["post-1942","psych_experiment","type-psych_experiment","status-publish","hentry","category-behavioral-economics","category-experimental-finance","tag-behavioral-finance","tag-colin-camerer","tag-curse-of-knowledge","tag-george-loewenstein","tag-martin-weber"],"_links":{"self":[{"href":"https:\/\/ashadocs.org\/index.php?rest_route=\/wp\/v2\/psych_experiment\/1942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ashadocs.org\/index.php?rest_route=\/wp\/v2\/psych_experiment"}],"about":[{"href":"https:\/\/ashadocs.org\/index.php?rest_route=\/wp\/v2\/types\/psych_experiment"}],"author":[{"embeddable":true,"href":"https:\/\/ashadocs.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ashadocs.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1942"}],"version-history":[{"count":0,"href":"https:\/\/ashadocs.org\/index.php?rest_route=\/wp\/v2\/psych_experiment\/1942\/revisions"}],"wp:attachment":[{"href":"https:\/\/ashadocs.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ashadocs.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ashadocs.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}