Hold on to it? An experimental analysis of the disposition effect
Journal Title: Judgment and Decision Making - Year 2017, Vol 12, Issue 2
Abstract
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.
Authors and Affiliations
Matteo Ploner
Keywords
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