This paper applies survival analysis to individual trading data from a discount brokerage firm, and documents significant individual-level repurchase bias, investors' tendency to disproportionately repurchase more previously sold winners than losers. Investor sophistication and experience...

This paper finds that the disposition effect, well-known in many financial markets, exists in the closed-end fund market, where fundamental values are known, yet the magnitude of the effect varies with the adoption of different reference points. Using the prospect theory explanation to this...

People often make decisions with both descriptive and experiential information available. However, little is known about the role of experience in individual economic decisions with the presence of descriptions. The present paper investigates this issue using an experiment with asset buying...

Heterogeneous beliefs often arise among people who have the same information but different personally experienced payoffs. To explain this phenomenon, this paper proposes a mechanism in which experienced payoffs distort beliefs: gains lead an agent to relatively underweight negative new signals...