Myopic Loss Aversion: A Behavioral Answer to the Equity Premium Puzzle? Finance & Investing Myopic Loss Aversion: A Behavioral Answer to the Equity Premium Puzzle? Stocks yield much higher returns than bonds and other riskless securities. In fact, in the last 100 years US equities have seen an...
These experienced subjects enable us to test whether market experience reduces bias in a manner that parallels research showing that trading experience can reduce behavioral biases (List, 2003). We find inexperienced participants succumb to MLA in our markets. Average trade values are lower when we ...
Behavioral Finance : Overcoming Loss AversionAnalysis, Market
For a consumer, economic decisions are based on certain types of behavior. Prospect Theory or the loss-aversion theory in behavioral economics and behavioral finance, aims to determine people’s decision making and their tendency for loss aversion.
Myopic loss aversion (MLA) has been found to have a persistent influence on individual decision making under risk. In this paper I show that team decision making attenuates MLA, but that teams are also prone to MLA 發表者:yinung • 發表在 experiment、finance、loss aversion、MLA、實驗 中 ...
LOSS AVERSION AND THE STATUS-QUO LABEL BIAS It has been noted and demonstrated that people are reluctant to make changes in their current state (called the status quo bias, Samuelson & Zeckhauser, 1988), and to trade objects they own (called the endowment effect, Thaler, 1980). Th... A...
Human emotion is one of the most effective factors in financial decisions and also value of securities. Thus, the main purpo se of this study was investigating the major behavioral biases (overconfidence, ambiguity-aversion and loss-aversion) in Tehran Stock Exchange. This study was a descriptive...
recent studies of two of the best known indications of loss aversion show that small changes in the framing of the experimental tasks can eliminate the implied loss aversion bias. One example of the effect of framing is summarized in Table 1. The left-hand side presents Redelmeier and Tversky...
Part of the Series Behavioral Finance What Is Loss Aversion? Loss aversion in behavioral economics refers to a phenomenon where a real or potential loss is perceived by individuals as psychologically or emotionally more severe than an equivalent gain. For instance, the pain of losing $100 is ...
Loss aversion in psychology refers to the emotional side of investing, namely the negative sentiment associated with recognizing a loss and its psychological effects.