According to standard (rational) models of (financial) decision-making, consumers should generally have a single strong, normative focal goal when making financial decisions like selecting which stocks to invest in: to maximize risk-adjusted financial returns. Nevertheless, consumers' financial...

The disposition effect refers to individuals' tendency to sell their winning investments too early, while holding on to their losing investments too long. This behavioral bias has negative consequences for individuals' wealth, because losing investments usually continue to underperform, while...

A well-documented behavioral pattern in consumer financial decision-making is the disposition effect, which refers to the tendency to sell winning investments too early, while holding on to losing investments too long. This bias has negative wealth consequences, because typically, individuals'...