Reviews on Correspondent Theory and Application Study on the Basis of Overconfidence

Nobel Economic Prize is awarded to behavioral economists Daniel Kahneman and Vernonl Smith in 2002.More and more Economists pay great attention to behavioral economic theories and traditional economic theories face challenge.Inspirations of behavioral economic stem from Psychology.The robust conclusion about individual judgment in psychology is that people are usually overconfidence.Foreign and domestic up to date papers are synthesized in this paper.Firstly,overconfidence theories and evidences are discussed.Secondly,the characteristics of overconfidence is analyzed.Lastly the further directions of behavioral economic theories based on overconfidence are indicated integrated with the application of overconfidence in economic.