Myopic Loss Aversion and Over-confidence
Myopic loss aversion revisited
... JEL Classification codes: D81, C91, D14 * We are grateful to Uri Gneezy, Jan Potters, Michael Haigh, John List, Thomas Langer and Martin Weber who generously provided their experimental data. We also thank participants ...
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Why does myopia decrease the willingness to invest? Is it myopic loss aversion or myopic loss probability aversion?
... their loss likelihoods differ substantially (and thereby their attractiveness, according to ...i.e. loss aversion, value sensitivity, and probability weighting, but also for restricted forms of CPT, ...
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Myopic loss aversion, disappointment aversion, and the equity premium puzzle
... on loss aversion is crucially dependent on a very short time horizon, and already a horizon of three years or so seems too long for loss aversion to be a satisfactory explanation of the ...
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Myopic loss aversion and the equity premium puzzle
... 3.3.1 Students Gneezy and Potters (1997) designed their lottery after Benartzi and Thaler (1995) proposed myopic loss aversion as a possible solution to the equity premium puzzle. They conducted 14 ...
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No myopic loss aversion in adolescents? – An experimental note
... Bellemare et al., 2005; Haigh and List, 2005; Langer and Weber, 2008; Fellner and Sutter, 2009; Charness and Gneezy, 2010; Eriksen and Kvaløy, 2010;). Our sample is different from all previous studies as we have ...
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Psychological and environmental determinants of myopic loss aversion
... or loss, can result in very different emotions (Ellsworth & Scherer, ...a loss will bring about strong negative emotions, such as anger, if the person expected to earn a lot and believes that he or she ...
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Myopic Loss Aversion under Ambiguity and Gender Effects
... people invest more when their myopia is corrected ([6, 7, 8, 9]). A common feature of this literature is that investment decisions are taken under risk, since subjects know the probabilities of the lotteries they are ...
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Myopic Loss Aversion: Information Feedback vs. Investment Flexibility
... Conclusion In this paper, we reported the results of an alternative experimental test for the presence of an evaluation period effect. This test allowed us to disentangle the effect of information feedback from that of ...
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Myopic Loss Aversion, Information Dissemination, and the Equity Premium Puzzle
... gation of the additive and multiplicative approaches is required in future work. Conclusion In this note, we performed an alternative test on the evaluation period effect, which allowed us to disentangle the effect of ...
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Causes, consequences, and cures of myopic loss aversion - An experimental investigation
... The first fact to catch one’s eye from comparing the Exogenous with the Endogenous model is that the coefficient of the investment horizon is significantly larger in the exogenous treatments than in the endogenous ones. ...
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The Role of Myopic Loss aversion in Pre-harvest Grain Marketing
... We are interested in identifying whether MLA can explain the producer’s behavior towards pre-harvest hedging. A producer can be modeled as an investor that makes a series of investment decisions and gets feedback on the ...
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Myopic Loss Aversion and House-Money Effect Overseas: an experimental approach
... Weber and Zuchel [2003] investigate the influence of prior outcomes on risk attitude in a framework close to our approach. They found that the prospect presentation might influence the risk attitude of subjects after ...
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The Effect of Information Feedback Frequency and Investment Flexibility on Myopic Loss Aversion
... phenomenon. Our findings revealed that there was no significant difference for financial officers based on the statistics obtained and the gap between their corresponding average amounts of bets of each panel was ...
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Myopic Loss Aversion and Stock Investments: An Empirical Study of Private Investors
... In 2003, we submitted a survey on MLA to the CentERdata panel and 2,226 panel members participated 4 . Since the survey focused on investors’ portfolio evaluation and rebalancing frequencies, it was addressed only to ...
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Myopic Loss Aversion and Stock Investments: An Empirical Study of Private Investors
... control over the important variables that are treated as exogenous in experimental studies on ...control over their investment horizons and feedback frequencies can change the observed effect of myopia on ...
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Do Professional Traders Exhibit Myopic Loss Aversion? An Experimental Analysis
... A few normative and positive implications naturally follow. First, our findings suggest that expected utility theory may not model professional traders’ behav- ior well, and this finding lends credence to behavioral ...
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The Effect of Financial Self Efficacy on Myopic Loss Aversion in Financial Decision Making
... are Myopic Loss Aversion and Financial Self-Efficacy. Myopic Loss Aversion is a combination of a tendency to overemphasize possible losses compared to gains (Loss ...
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Myopic Loss Aversion Revisited: The Effect of Probability Distortions in Choice Under Risk
... that myopic loss aversion cannot fully explain the experimental ...of loss aversion of a modal subject across treatments with high and low evaluation ...
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Manipulating individuals' risk-taking with financial incentives: a myopic loss aversion experiment
... does myopic framing reduce overconfidence factor? Obviously, the example and rationale discussed above are simplified to great extent and in real life investors may not have fixed reviewing periods and they are ...
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Reevaluating evidence on myopic loss aversion : aggregate patterns versus individual choices
... Pavlo R. Blavatskyy † and Ganna Pogrebna ‡ Abstract Investors who are more willing to accept risks when evaluating their investments less frequently are said to exhibit myopic loss aversion (MLA). ...
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