Causes, consequences, and cures of myopic loss aversion: An experimental investigation

Arbeitspapier

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, subjects prefer on average shorter investment horizons and more frequent feedback. Exploiting the status quo bias by setting a long investment horizon or low feedback frequency as a default turns out to be a successful behavioural intervention that increases investment levels.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Papers in Economics and Statistics ; No. 2008-01

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Information, Knowledge, and Uncertainty: General ; Portfolio Choice; Investment Decisions
• Thema: myopic loss aversion ; risk ; investment ; experiment ; Anlageverhalten ; Risikoaversion ; Test ; Informationsverhalten ; Equity Premium Puzzle ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fellner, Gerlinde ; Sutter, Matthias
• Ereignis: Veröffentlichung
• (wer): University of Innsbruck, Department of Public Finance
• (wo): Innsbruck
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/71963
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ