This paper investigates the effect of house money on the risk-taking behavior of individual investors. When gains are more substantial, individuals tend to take greater risk. The house money effect seems to decline over time, because the propensity for risk taking following gains is diminished...

Individual investors that are also natural persons play an important role in the stock market as providers of liquidity, and it is their investment performance that directly influences their rate of survival in the market. As to whether the outcome of their operating performance is due to their...