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 …

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 …

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 …

increases in investors' risk aversion which in turn increases investors' proneness to familiarity bias. I hypothesize that …

We study three fundamental components of financial agency settings: Perception and communication of investment profiles … investment profile terminology is very heterogeneous, resulting in substantial miscommunication between clients and agents …. Financial agents show a high willingness to implement their clients’ preferred investment profiles independent of monetary …