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When investors hold biased expectations, trust causes managers to pander to investor beliefs.
Specifically, board of directors need to carefully evaluate whether stock options and bonuses are awarded for meaningful value creation, not by beating biased expectations.
Although these findings require replication within clinical populations, they suggest that a more general interpretative bias may account for parents' biased expectations about the children's responses, and that this bias may warrant attention within treatments for children with anxiety disorders in the context of parental anxiety disorders.
Individuals with mild depression exhibit less biased expectations than healthy individuals, whereas those with severe depression express a pessimistic bias [ 11].
Their hopes may not be fully realized, but they will be more successful, healthier and happier if they hold on to positively biased expectations.
A biased expectations theory that asserts that the shape of the yield curve is determined by the supply of and demand for securities within each maturity sector.
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For example, the effects of biased wage expectations or reference dependence with respect to those expectations call into question the likely efficacy of partial wage insurance at speeding up returns to work for displaced workers.
There are good reasons to think that one behavioral barrier to job search and employment is that individuals may have biased wage expectations.
The behavioral approach also reinterprets traditional labor market policy proposals by taking into account loss aversion and potentially biased wage expectations, particularly relevant considerations in the case for and the design of wage-loss insurance policies.
Of course, the benefits of such a redesign in mitigating the effects of biased wage expectations and loss aversion must be weighed against the possible costs it might impose on targeting and allocative efficiency.
Also, rater expectations regarding extrapyramidal symptoms may have been different at that time, and inclusion of a haloperidol arm may have also biased rater expectations regarding extrapyramidal symptoms.
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