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Loss Aversion and Seller Behaviour: Evidence from the Housing Market
Genesove, David; Mayer, Christopher - C.E.P.R. Discussion Papers - 2001
Data from downtown Boston in the 1990s show that loss aversion determines seller behaviour in the housing market. Condominium owners subject to nominal losses: (1) set higher asking prices of 25-35% of the difference between the property’s expected selling price and their original purchase...
Persistent link: https://www.econbiz.de/10005136421
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Performance Measurement with Loss Aversion
Gemmill, Gordon T; Hwang, Soosung; Salmon, Mark - C.E.P.R. Discussion Papers - 2005
We examine a simple measure of portfolio performance based on prospect theory, which captures not only risk and return but also reflects differential aversion to upside and downside risk. The measure we propose is a ratio of gains to losses, with the gains and losses weighted (if desired) to...
Persistent link: https://www.econbiz.de/10005114253
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Aspirations, Well-being, Risk-Aversion and Loss-Aversion
Koedijk, Kees; Pownall, Rachel A J; Statman, Meir - C.E.P.R. Discussion Papers - 2012
Financial well-being is distinct from income. Some people with high incomes suffer low financial well-being, as their incomes fall short of their aspirations. Such people feel propelled to reach their aspirations by taking risk and willing to bear losses. Conversely, some people with low incomes...
Persistent link: https://www.econbiz.de/10011083480
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Perceiving Prospects Properly
Steiner, Jakub; Stewart, Colin - C.E.P.R. Discussion Papers - 2014
features with prospect theory, namely, overweighting of small probability events (and corresponding underweighting of high …
Persistent link: https://www.econbiz.de/10011083577
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Keep Up With the Winners: Experimental Evidence on Risk Taking, Asset Integration, and Peer Effects
Fafchamps, Marcel; Kebede, Bereket; Zizzo, Daniel John - C.E.P.R. Discussion Papers - 2013
The paper reports the result of an experimental game on asset integration and risk taking. We find evidence that winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the experiment affects risk taking. We find some evidence of...
Persistent link: https://www.econbiz.de/10011084146
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Loss Aversion and the Asymmetric Transmission of Monetary Policy
Gaffeo, Edoardo; Petrella, Ivan; Pfajfar, Damjan; … - C.E.P.R. Discussion Papers - 2014
There is widespread evidence that monetary policy exerts asymmetric effects on output over contractions and expansions in economic activity, while price responses display no sizeable asymmetry. To rationalize these facts we develop a dynamic general equilibrium model where households’ utility...
Persistent link: https://www.econbiz.de/10011084378
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Testing for Reference Dependence: An Application to the Art Market
Beggs, Alan; Graddy, Kathryn - C.E.P.R. Discussion Papers - 2005
This paper tests for reference dependence, using data from Impressionist and Contemporary Art auctions. We distinguish reference dependence based on ‘rule of thumb’ learning from reference dependence based on ‘rational’ learning. Furthermore, we distinguish pure reference dependence from...
Persistent link: https://www.econbiz.de/10005661640
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Political Connections and Firm Value: Evidence from the Regression Discontinuity Design of Close Gubernatorial Elections
Do, Quoc-Anh; Lee, Yen-Teik; Nguyen, Bang Dang - C.E.P.R. Discussion Papers - 2015
Using the regression discontinuity design of close gubernatorial elections in the U.S., we identify a significant and positive impact of the social networks of corporate directors and politicians on firm value. Firms connected to elected governors increase their value by 3.89%. Political...
Persistent link: https://www.econbiz.de/10011249372
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Corruption And Competition In Public Market Auctions
Compte, Olivier; Lambert-Mogiliansky, Ariane; Verdier, … - C.E.P.R. Discussion Papers - 2000
This paper investigates the effect of corruption on competition in government procurement auctions. Our assumption is … corruption is to facilitate collusion in price between firms. This can result in high public spending and inefficient allocation … which unilateral anti-corruption controls may restore price competition. …
Persistent link: https://www.econbiz.de/10005662229
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Leniency and Whistleblowers in Antitrust
Spagnolo, Giancarlo - C.E.P.R. Discussion Papers - 2006
fraud, or corruption - that share with cartels the crucial features that well designed leniency and whistleblower programs …
Persistent link: https://www.econbiz.de/10005662235