The Open UniversitySkip to content
 

Trading on illusions: unrealistic perceptions of control and trading performance

Fenton-O'Creevy, M.; Nicholson, N.; Soane, E. and Willman, P. (2003). Trading on illusions: unrealistic perceptions of control and trading performance. Journal of Occupational and Organizational Psychology, 76(1) pp. 53–68.

DOI (Digital Object Identifier) Link: http://dx.doi.org/10.1348/096317903321208880
Google Scholar: Look up in Google Scholar

Abstract

This paper examines the impact of illusory control beliefs on the performance of traders in financial instruments. The authors argue that the task and environment faced by traders are conducive to the development of illusions of control and that individual propensity to illusion of control will be (inversely) related to trader performance. Using an innovative computer task, designed to assess illusion of control in the field, data from 107 traders in four organizations showed individual differences in this bias to have a significant, inverse, association with performance, as measured by managers' ratings of trader performance and by total remuneration. The authors conclude that, at least in this context, illusion of control is maladaptive and that it is productive to take an individual difference approach to the study of such illusions. Implications for debates about the costs and benefits of positive illusions are discussed.

Item Type: Journal Article
Copyright Holders: 2003 British Psychological Society
ISSN: 0963-1798
Project Funding Details:
Funded Project NameProject IDFunding Body
Not SetL211252056ESRC (Economic and Social Research Council)
Academic Unit/Department: Open University Business School
Item ID: 1317
Depositing User: Users 12 not found.
Date Deposited: 09 Jun 2006
Last Modified: 20 Mar 2014 10:29
URI: http://oro.open.ac.uk/id/eprint/1317
Share this page:

Altmetrics

Scopus Citations

Actions (login may be required)

View Item
Report issue / request change

Policies | Disclaimer

© The Open University   + 44 (0)870 333 4340   general-enquiries@open.ac.uk