For one thing, many psychological biases and irrationalities involve people behaving in very complex, situation-dependent ways - people may underreact
to market movements in one situation, and overreact in another.
1145, 1145 (2009) (finding that "consumers underreact
to taxes that are not salient").
This suggests that the market not only underreact
to a firm's own R&D investments, but also to industry peers' R&D investments.
I would have come home," the Ohio governor said, adding that though the president should overreact to situations, he shouldn't underreact
Future research should try to explain why this happens and to clarify the circumstances under which individuals tend to overreact or underreact
Sandman and Lanard argue that such a global declaration would be reasonable, given that in an uncertain situation it's better to err on the side of caution than to underreact
The live rat cyborgs have self-consciousness, and they might underreact
or overreact in the training procedure.
CHICAGO -- Overreact, don't underreact
, when it comes to possible health care privacy breaches, attorney Clinton Mikel advised at a conference held by the American Bar Association.
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
This study examines whether investors overreact to bad news during good times and underreact
to bad news during bad times.
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.