Will investors adapt their investment behavior whenfaced with a change in information feedback and investmentflexibility?

Assuming investors are loss averse, repeated risky investments are less attractive inmyopic evaluation. A theoretical foundation for this effect is given by the behavioralconcept of myopic loss aversion (MLA). The consequences of MLA have been confirmedin several between-subject experimental studies. According to the literature, thetransferability of the effect into practice seems largely undisputed. In particular, it isassumed that investors adapt their behavior if feedback frequency and investment flexibilitychange. However, there is no (within-subject) experimental evidence for this conjectureso far. To close this gap we conduct the first experiment on MLA in which thedegree of myopia is manipulated to change over time. Our analysis reveals that the influenceof changes in feedback frequency and investment flexibility are not asstraightforward as presumably assumed.