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paper we address two issues related to the effects of MLA on risky investment decisions. First, we assess the relative … impact of feedback frequency and investment flexibility (via the investment horizon) on risky investments. Second, given that … we observe higher investments with a longer investment horizon, we examine conditions under which investors might …
Persistent link: https://www.econbiz.de/10005765187
paper we address two issues related to the effects of MLA on risky investment decisions. First, we assess the relative … impact of feedback frequency and investment flexibility (via the investment horizon) on risky investments. Second, given that … we observe higher investments with a longer investment horizon, we examine conditions under which investors might …
Persistent link: https://www.econbiz.de/10005739678
We examine in an experiment the causes, consequences and possible cures of myopic loss aversion (MLA) for investment … behaviour under risk. We find that both, investment horizons and feedback frequency contribute almost equally to the effects of … MLA. Longer investment horizons and less frequent feedback lead to higher investments. However, when given the choice …
Persistent link: https://www.econbiz.de/10005432667
We examine in an experiment the causes, consequences and possible cures of myopic loss aversion (MLA) for investment … behaviour under risk. We find that both, investment horizons and feedback frequency contribute almost equally to the effects of … MLA. Longer investment horizons and less frequent feedback lead to higher investments. However, when given the choice …
Persistent link: https://www.econbiz.de/10005090568
choice problem concerns the investment of an amount of money in a safe option and a risky option when there is a 'global risk …We investigate a novel dynamic choice problem in an experiment where emotions are measured through self-reports. The … risk can reduce the amount invested in the risky option. This result cannot be explained by classical Expected Utility or …
Persistent link: https://www.econbiz.de/10005791308
In previous models of (cumulative) prospect theory reference-dependence of preferences is imposed beforehand and the location of the reference point is exogenously determined. This paper provides an axiomatization of a new specification of cumulative prospect theory, termed endogenous prospect...
Persistent link: https://www.econbiz.de/10010955835
Cumulative Prospect Theory (Kahneman, Tversky, 1979, 1992) holds that the value function is described using a power function, and is concave for gains and convex for losses. These postulates are questioned on the basis of recently reported experiments, paradoxes (gain-loss separability...
Persistent link: https://www.econbiz.de/10009147682
risk and typically need to assume stability of these characteristics over time and across decision domains. We test the … reliability of two choice tasks for eliciting discount rates, risk aversion, and probability weighting and assess the stability of … largely uncorrelated with decisions in other important life domains involving intertemporal trade-offs and risk. …
Persistent link: https://www.econbiz.de/10010681226
This paper analyzes gender differences in the disposition effect in an experiment based on Weber and Camerer (1998 …
Persistent link: https://www.econbiz.de/10010743733
We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 … employers. Employers can observe investment behavior, but not investors’ ability types. Thereby, reputational incentives may …
Persistent link: https://www.econbiz.de/10011122679