Evaluation Periods and Assett Prices in a Market Experiment
The authors test the frequency of feedback information about the performance of an investment portfolio and the flexibility with which the investor can change the portfolio influence her risk attitude in markets. In line with the prediction of Myopic Loss Aversion (Benartzi and Thaler, 1995), the authors find that more information and more flexibility result in less risk taking. Market prices of risky assets are significantly higher if feedback frequency and decision flexibility are reduced. This result supports the findings from individual decision-making, and shows that market interactions do not eliminate such behavior or its consequences for prices.
Year of publication: |
2002-02
|
---|---|
Authors: | Gneezy, Uri ; Kapteyn, Arie ; Potters, Jan |
Institutions: | RAND |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Evaluation Periods and Asset Prices in a Market Experiment
Gneezy, Uri, (2003)
-
Evaluation periods and asset prices in a market experiment
Genîzî, Ûrî, (2000)
-
Evaluation periods and asset prices in a market experiment
Genîzî, Ûrî, (2003)
- More ...