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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 …
Persistent link: https://www.econbiz.de/10010293429
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 …
Persistent link: https://www.econbiz.de/10010365910
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 …
Persistent link: https://www.econbiz.de/10010263139
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
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 …
Persistent link: https://www.econbiz.de/10005432667
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 …
Persistent link: https://www.econbiz.de/10005090568
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 …
Persistent link: https://www.econbiz.de/10009762694
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
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 …
Persistent link: https://www.econbiz.de/10010334051