| Summary: | 碩士 === 國立清華大學 === 科技管理研究所 === 93 === Overconfidence is the most common concept of behavioral finance to explicate the decision making and investment behavior, and it is also the conundrum cared by many financial savants. Furthermore, some savants imagine overconfidence is the most tested detection. This research intends to appraise behavior pattern of investors are overconfident informed traders under asymmetric information to find decision making of investors and anomalies more precisely. We show that when the numbers of informed traders increase, and the degree of overconfidence of informed traders are heavier, the market price will overreact more often, more volatile, and higher the probability of informed trading. This study also leads to policy improvement. The government should consolidate information disclosure to ameliorate asymmetric information, slacken the volatile of asset price and overreaction to deescalate the overconfident informed traders.
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