’ adaptation to the loss situation and, subsequently, whether this adaptation affects future investment decisions. As investors … performance, together influence the decision to hold on to or to capitulate on an investment. We study the relative contribution … decision to capitulate an investment, however, only depends directly on the expectation about the stock’s future performance …

From the viewpoint of the independence axiom of expected utility theory, an interesting empirical dynamic choice … variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision, but before the resolution of the decision risk; (iii) after the resolution of the decision risk …