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 …

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 …

attractive attracted under risk conditions. …

We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology … additional reluctance to participate in a mixed domain lottery beyond that predicted by risk aversion. We show that only …

I exploit a natural experiment to show that household investment decisions depend on the manner in which information is …

We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute … their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky …

-period life cycle model, where the household decides on optimal consumption and investment in a portfolio with one risk-free and … affect optimal consumption and risk taking activity. However, it must be sufficiently high in order to rule out outcomes with … or in the future. As a result, loss aversion directly affects consumption and risky investment. Reference levels play a …

In this paper we analyze the two-period consumption-investment decision of a household with prospect theory preferences …