Zuchel, Heiko - Sonderforschungsbereich 504 "Rationalitätskonzepte, …; … - 2001
Why do some investors tend to ''sell winners too early and ride losers too long''? Such behavior, labeled the disposition effect, has been attributed to biases in return expectations, time-varying risk-aversion based on the value function of prospect theory, and regret theory. I review these...