Narrow search
Showing 1 - 10 of 665
Cover Image
Comparing the Point Predictions and Subjective Probability Distributions of Professional Forecasters
Engelberg, Joseph - 2010
We use data from the Survey of Professional Forecasters to compare point forecasts of GDP growth and inflation with the subjective probability distributions held by forecasters. We find that SPF forecasters summarize their underlying distributions in different ways and that their summaries tend...
Persistent link: https://www.econbiz.de/10012761765
Cover Image
Revealed Preference Analysis with Framing Effects
Goldin, Jacob - 2018
In many settings, decision-makers' behavior is observed to vary based on seemingly arbitrary factors. Such framing … permit either partial- or point-identification of preferences for the decision-makers who choose consistently across frames …. Recovering population preferences requires understanding the empirical relationship between decision-makers' preferences and …
Persistent link: https://www.econbiz.de/10012909856
Cover Image
Enhancing the Efficacy of Teacher Incentives Through Loss Aversion : A Field Experiment
Fryer, Roland G. - 2012
Domestic attempts to use financial incentives for teachers to increase student achievement have been ineffective. In this paper, we demonstrate that exploiting the power of loss aversion--teachers are paid in advance and asked to give back the money if their students do not improve...
Persistent link: https://www.econbiz.de/10013103529
Cover Image
Risk Aversion as a Perceptual Bias
Khaw, Mel - 2017
imprecise (and noisy) mental representation of the decision situation. In this model, risk aversion is predicted without any … represents an optimal Bayesian decision, given the limitations of the mental representation of the situation. We propose a …
Persistent link: https://www.econbiz.de/10012959374
Cover Image
Climatic Roots of Loss Aversion
Galor, Oded - 2018
This research explores the origins of loss aversion and the variation in its prevalence across regions, nations and ethnic group. It advances the hypothesis and establishes empirically that the evolution of loss aversion in the course of human history can be traced to the adaptation of humans to...
Persistent link: https://www.econbiz.de/10012907746
Cover Image
Mental Accounting, Loss Aversion, and Individual Stock Returns
Barberis, Nicholas - 2010
We study equilibrium firm-level stock returns in two economies: one in which investors are loss averse over the fluctuations of their stock portfolio and another in which they are loss averse over the fluctuations of individual stocks that they own. Both approaches can shed light on empirical...
Persistent link: https://www.econbiz.de/10012763180
Cover Image
Prospect Theory and Asset Prices
Barberis, Nicholas - 2010
We propose a new framework for pricing assets, derived in part from the traditional consumption-based approach, but which also incorporates two long-standing ideas in psychology: prospect theory, and evidence on how prior outcomes affect risky choice. Consistent with prospect theory, the...
Persistent link: https://www.econbiz.de/10012763762
Cover Image
Expectations-Based Loss Aversion May Help Explain Seemingly Dominated Choices in Strategy-Proof Mechanisms
Dreyfuss, Bnaya - 2019
Deferred Acceptance (DA), a widely implemented algorithm, is meant to improve allocations: under classical preferences, it induces preference-concordant rankings. However, recent evidence shows that—in both real, large-stakes applications and experiments—participants frequently play...
Persistent link: https://www.econbiz.de/10012860839
Cover Image
Can Myopic Loss Aversion Explain the Equity Premium Puzzle? Evidence from a Natural Field Experiment with Professional Traders
Larson, Francis - 2016
Behavioral economists have recently put forth a theoretical explanation for the equity premium puzzle based on combining myopia and loss aversion. Complementing the behavioral theory is evidence from laboratory experiments, which provide strong empirical support consistent with myopic loss...
Persistent link: https://www.econbiz.de/10012983660
Cover Image
Myopic Loss Aversion and the Equity Premium Puzzle
Benartzi, Shlomo; Thaler, Richard H. - 2021
The equity premium puzzle, first documented by Mehra and Prescott, refers to the empirical fact that stocks have greatly outperformed bonds over the last century. As Mehra and Prescott point out, it appears difficult to explain the magnitude of the equity premium within the usual economics...
Persistent link: https://www.econbiz.de/10013311880