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Mengoli, Stefano; Pagano, Marco; Pattitoni, Pierpaolo - 2021

Retail investors pay over twice as much attention to local companies than non-local ones, based on Google searches …. News volume and volatility amplify this attention gap. Attention appears causally related to perceived proximity: first …, acquisition by a nonlocal company is associated with less attention by locals, and more by nonlocals close to the acquirer; second …

Persistent link: https://www.econbiz.de/10012698207

Money is more than memory

Bigoni, Maria; Camera, Gabriele; Casari, Marco - 2014

Impersonal exchange is the hallmark of an advanced society. One key institution for impersonal exchange is money, which economic theory considers just a primitive arrangement for monitoring past conduct in society. If so, then a public record of past actions - or memory - supersedes the function...

Persistent link: https://www.econbiz.de/10010429796

Emotions-at-risk : an experimental investigation into emotions, option prices and risk perception

Bosman, Ronald; Kräussl, Roman; Galen, Thomas van - 2014

This paper experimentally investigates how emotions are associated with option prices and risk perception. Using a binary lottery, we find evidence that the emotion 'surprise' plays a significant role in the negative correlation between lottery returns and estimates of the price of a put option....

Persistent link: https://www.econbiz.de/10010427973

Why do investors sell losers? : how adaptation to losses affects future capitulation decisions

Lee, Carmen; Kräussl, Roman; Lucas, André; Paas, Leo - 2010

According to disposition effect theory, people hold losing investments too long. However, many investors eventually sell at a loss, and little is known about which psychological factors contribute to these capitulation decisions. This study integrates prospect theory, utility maximization...

Persistent link: https://www.econbiz.de/10008748098

Hidden regret in insurance markets : adverse and advantageous selection

Huang, Rachel J.; Muermann, Alexander; Tzeng, Larry Y. - 2008

We examine insurance markets with two types of customers: those who regret suboptimal decisions and those who don.t. In this setting, we characterize the equilibria under hidden information about the type of customers and hidden action. We show that both pooling and separating equilibria can...

Persistent link: https://www.econbiz.de/10003831238

Household economic decisions under the shadow of terrorism

Christelis, Dimitris; Georgarakos, Dimitris - 2009

We investigate, using the 2002 US Health and Retirement Study, the factors influencing individuals' insecurity and expectations about terrorism, and study the effects these last have on households' portfolio choices and spending patterns. We find that females, the religiously devout, those...

Persistent link: https://www.econbiz.de/10003864066

Trust, sociability and stock market participation

Georgarakos, Dimitris; Pasini, Giacomo - 2009

We investigate the effects of both trust and sociability for stock market participation, the role of which has been examined separately by existing finance literature. We use internationally comparable household data from the Survey of Health, Ageing and Retirement in Europe supplemented with...

Persistent link: https://www.econbiz.de/10003947447

The consumption and wealth effects of an unanticipated change in lifetime resources

Jappelli, Tullio; Padula, Mario - 2015

In 2000 Italy replaced its traditional system of severance pay for public employees with a new system. Under the old regime, severance pay was proportional to the final salary before retirement; under the new regime it is proportional to lifetime earnings. This reform entails substantial losses...

Persistent link: https://www.econbiz.de/10011281868

Microeconometric evidence on demand-side real rigidity and implications for monetary non-neutrality

Beck, Günter W.; Lein-Rupprecht, Sarah M. - 2016

To model the observed slow response of aggregate real variables to nominal shocks, most macroeconomic models incorporate real rigidities in addition to nominal rigidities. One popular way of modelling such a real rigidity is to assume a non-constant demand elasticity. By using a homescan data...

Persistent link: https://www.econbiz.de/10011532828

Size and welfare costs of price differences across European countries

Rühl, Christian - 2016

Studies employing micro price data suggest that price dispersion is larger between regions in different countries than between regions in the same country. To investigate the strength of this border effect, deviations from the law of one price are used in most studies to provide statistical...

Persistent link: https://www.econbiz.de/10011532862