This research examines capital income taxation for a loss averse investor under some acceptable in the literature … the attractive full loss offset provisions. However, risk taking can be stimulated if the investor interprets part of the … tax as a loss instead as a reduced gain. Then investor becomes risk seeking and moves away from the discomfort zone of …

We studied how the capital allocation decisions and the loss version of nonprofessional investors change subject to … the past performance and the portfolio evaluation frequency affect investor behavior and prove myopic loss aversion holds … using standard VaR significance levels may be underestimating the loss aversion of individual investors …

We explicitly derive and explore the optimal consumption and portfolio policies of a loss- averse individual who … without human capital. The welfare loss that this individual would suffer under the conventional CRRA consumption and …

We explicitly derive and explore the optimal consumption and portfolio policies of a loss-averse individual who … human capital. The welfare loss that this individual would suffer under the conventional CRRA consumption and portfolio …

losses separately, there was no method to measure loss aversion under ambiguity. Our method allows this and thereby it can … was concave for gains and convex for losses and there was substantial loss aversion. Both utility and loss aversion were …

This paper studies the wealth and pricing implications of loss aversion in the presence of arbitrageurs with Epstein …-Zin preferences. Loss aversion affects an investor's survival prospects mainly through its effect on the investor's portfolio holdings …. Loss-averse investors will be driven out of the market and do not affect long-run prices if their portfolio positions are …

We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion …, utilizing an asset integration protocol designed to ensure that a loss of cash provided by the experimenter is viewed as a real … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology …

Narrow bracketing in combination with loss aversion has been shown to reduce individual risk-taking. This is known as … myopic loss aversion (MLA) and has been corroborated by many studies. Recent evidence has contested this notion indicating …

examine how human beings respond to major financial losses. University ethics boards would not allow this kind of huge-loss …. Participants lose any cash placed on a wrong answer. We find evidence of risk reduction after people suffer a loss in the previous … decision round. A prior financial loss of £10,000 is estimated to increase the propensity to fully diversify by 6 percentage …