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Persistent link: https://www.econbiz.de/10003675466
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 …
Persistent link: https://www.econbiz.de/10009731795
during investment processes. This paper presents an alternate view on the drivers behind entrepreneurs’ risk-taking behavior …This paper presents evidence on the role of the endowment effect in shaping the risk-taking behavior of entrepreneurs …
Persistent link: https://www.econbiz.de/10011982570
between financial wealth and participation as well as conditional stock share. With respect to these investment behaviors and … to consumption pattern, assuming common preference parameters and the high historical equity risk premium, the results …
Persistent link: https://www.econbiz.de/10013110076
The disposition effect is a well-established phenomenon which describes the behavior of investors that are more willing to sell capital gains than capital losses. In this article we present experimental evidence on a situation where an investor decides on behalf of another person. In our...
Persistent link: https://www.econbiz.de/10011770595
Loss aversion has been shown to be an important driver of people’s investment decisions. Encouraged by regulators …, financial institutions are in search of ways to incorporate clients’ loss aversion in their risk classifications. The most … risk-profiling application of an established financial institution. In total, we elicit loss aversion for 1,040 employees …
Persistent link: https://www.econbiz.de/10013492094
attractive attracted under risk conditions. …
Persistent link: https://www.econbiz.de/10014246136
Overall, 72 subjects invest their endowment in four risky assets. Each com-bination of assets yields the same expected return and variance of returns. Illusion of expertise prevails when one prefers nevertheless the self-selected portfolio. After being randomly assigned to groups of four...
Persistent link: https://www.econbiz.de/10011408429
variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision, but before the resolution of the decision risk; (iii) after the resolution of the decision risk … problem involves the presence of a “global risk,” that is, a chance of losing everything whichever safe or risky option is …
Persistent link: https://www.econbiz.de/10011349715
experimental studies and the conclusion has been drawn that banks could in fact influence investors' risk taking behavior by … and manipulates feedback frequency (and investment flexibility) within-subject. Our analysis reveals that the impact of … superimpose the standard MLA effect and generate unexpected dynamic patterns of risk taking behavior …
Persistent link: https://www.econbiz.de/10013068431