Researcher biography

Hammad Siddiqi is an experimental and behavioral economist who does research on the interface of finance and psychology. Recently, he has shown that in an experimental financial market a behavioral bias called analogy making  influences the way people price call options. In the context of asset pricing, analogy making means that similar assets should offer the same returns. This is in contrast with no-arbitrage principle which means that identical assets should offer the same returns. Analogy making can be considered a special of the coarse thinking model of Mullainathan, Schwartzstein, and Shleifer. Currently, he is exploring the theoretical and empirical implications of analogy making for option prices in particular and asset prices in general. He is also exploring the role of interaction between analogy making and limited awareness as a mechanism that generates asset price bubbles. For more information on his publications see his website.