Hold on to it? An experimental analysis of the disposition effect
This paper experimentally investigates a well-known anomaly in portfolio management, i.e., the fact that paper losses are realized less than paper gains (disposition effect). I confirm the existence of the disposition effect in a simple risky task in which choices are taken sequentially. However, wh...
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2017-03-01
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| Series: | Judgment and Decision Making |
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| Online Access: | http://journal.sjdm.org/16/16818/jdm16818.pdf |
| Summary: | This paper experimentally investigates a well-known anomaly in
portfolio management, i.e., the fact that paper losses are realized less than
paper gains (disposition effect). I confirm the existence of the disposition
effect in a simple risky task in which choices are taken sequentially. However,
when choices are planned ahead and a contingent plan is defined, a reversal in
the disposition effect is observed. |
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| ISSN: | 1930-2975 |