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
Hold on to it? An experimental analysis of the disposition effect / Ploner, Matteo. - In: JUDGMENT AND DECISION MAKING. - ISSN 1930-2975. - ELETTRONICO. - 12:2(2017), pp. 118-127. [10.1017/S1930297500005660]
Hold on to it? An experimental analysis of the disposition effect
Ploner, Matteo
2017-01-01
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 observedFile in questo prodotto:
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