Representative heuristic psychology and overreaction in international petroleum futures market

The representative heuristic psychology is one of the unreasonable psychologies existing in the financial market. A novel research idea is given in this paper: using the corresponding relation and grey interconnect degree to check this psychology in the international petroleum futures market, and give an empirical test for some events such as OPEC meetings and the war. At the same time, we also verify the overreaction behavior, which is tightly connected with the representative heuristic psychology, by the way of events study. The results show that there is no obvious representative heuristic psychology in the petroleum futures market, but existing overreaction behavior.