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 …

increases investment levels. -- myopic loss aversion ; risk ; investment ; experiment …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 …

experiment to compare the betting behavior under the information feedback frequency and investment flexibility. According to the …The prospect theory proposed by (Kahneman and Tversky, 1979) stated that people are risk-averse when faced with profits … and risk-loving when faced with loss. Benartzi and Thaler (1995) combined the Myopic Loss Aversion and Mental Accounting …

We present results from a highly powered online experiment with 937 participants on Amazon Mechanical Turk (MTurk) that … examined whether MTurkers exhibit myopic loss aversion (MLA). The experiment consisted of measuring MLA-compliant behavior in … two between-subjects treatments that differed only regarding the risk profile of the risky asset employed. We found no …

children apply it as a choice heuristic. We report on results of an experiment that tests whether children diversify in a … diversification, both for the sake of variety across consumption goods and for the purpose of mitigating risk when faced with a choice … between risk aversion and diversification and find no significant connection between the two. Our results indicate that …

It is shown how to test revealed preference data on choices under uncertainty for consistency with first and second … order stochastic dominance (FSD or SSD). The axiom derived for SSD is a necessary and sufficient condition for risk aversion …. If an investor is risk averse, stochastic dominance relations can be combined with revealed preference relations to …

decision. We find that investment decreases as a result of transitions from the first to the third level and we even observe … lower investments in case of positive changes in income. Investment decreases most if negative valuation adjustments are …-based decreases in net income. For larger positive and negative adjustments the impact of valuation levels on investment turns out to …

In this paper we investigate how volatility shocks influence investors' perceptions about a stock's risk, its future … development, and investors' investment propensity. We ran artefactual field experiments with two participant pools (finance … professionals and students) that had to take investment decisions, differing in (i) the direction of the shock (down, up, straight …