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We study a natural experiment in which 1.5 million investors participate in allocation lotteries for Indian IPO stocks … agents learn from random experience about their ability to operate in the market environment best explains the results …. Investors who have received multiple past IPO allocations show smaller responses, suggesting that learning/selection moderates …
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We study a unique field experiment in India in which 1.5 million stock investors face lotteries for the random … experience in the IPO market increases but remains even for very experienced investors. Leading theories of the endowment effect …
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