The disposition effect is the observation that investors hold winning stocks too long and sell losing stocks too early …. A standard explanation of the disposition effect refers to prospect theory and in particular to the asymmetric risk … that for reasonable parameter values the disposition effect can however not be explained by prospect theory as proposed by …

There is a well-known intuition linking prospect theory with the disposition effect, the tendency of investors to sell … formalize the intuition. However, some have found it difficult to predict a disposition effect while others produce a more …. <i>J. Risk Uncertainty</i> <b>5</b>(4) 297-323) and lognormal asset prices, investors exhibit a disposition effect as …

number of puzzling facts. These include the disposition effect, the poor trading performance of individual investors, the …

this issue experimentally, using as an example a robust behavioral anomaly in the finance area: the disposition effect …