I guess the fundamental difference is that I think that it is far more likely that France in 2015 will overreact to these attacks than underreact
2004) suggest that because R&D expenditures usually convey intangible information, investors tend to underreact
to the R&D-investing firm's stock price.
Their results show that analysts tend to underreact
to performance measures that have significant predictive ability for future earnings of wireless firms: customer acquisition cost, average revenue per user, and the number of subscribers.
These statistics indicate the voters underreact
to wins by low-ranked teams, and overreact to losses by top-ranked teams.
117) Similarly, markets may systematically overreact or underreact
to different types of information.
Stefano Giglio, University of Chicago and NBER, and Kelly Shue, University of Chicago, "No News is News: Do Markets Underreact
to taxes due to salience and those who underreact
due to lack
This suggests that, as with equity offerings, investors tend to underreact
to the information contained in the announcement, so that the full impact of the CB issue is only recognized over a longer time horizon
You can't overreact or underreact
in any situation.
As a result, investors tend to overreact to private information signals and underreact
to public information signals.
Generating a rapidly changing environment--that is, engaging in activity that is so quick it is disorienting and appears uncertain or ambiguous to the enemy--inhibits the adversary's ability to adapt and causes confusion and disorder that, in turn, causes an adversary to overreact or underreact
Cohen and Frazzini (2006) argue that in the market in which all participants are potential recipients of news, investors underreact
to news from economically linked firms.