Narrow bracketing in combination with loss aversion has been shown to reduce individual risk-taking. This is known as … myopic loss aversion (MLA) and has been corroborated by many studies. Recent evidence has contested this notion indicating …

financial decisionmaking. In this paper we present a simple model based on loss aversion that can accommodatefor all of these …

This research examines capital income taxation for a loss averse investor under some acceptable in the literature … the attractive full loss offset provisions. However, risk taking can be stimulated if the investor interprets part of the … tax as a loss instead as a reduced gain. Then investor becomes risk seeking and moves away from the discomfort zone of …

two-asset problem of the PT investor for one risk-free and one risky asset and find that loss aversion and the reference … focus on investors with PT preferences under different scenarios regarding the reference return and the degree of loss … aversion and compare their portfolio performance with the performance of investors under CVaR, risk neutral, linear loss averse …

We study the asset allocation of a quadratic loss-averse (QLA) investor and derive conditions under which the QLA … loss-averse portfolios, QLA portfolios display significantly less risk but they also yield lower returns. -- quadratic loss …

In thi s paper we examine capital income taxation of a reference dependent sufficiently loss averse investor in a two … period portfolio choice model under full loss offset provisions. Capital income taxation with loss offset provisions has been … different types of loss averse investors in terms of their ambition. We consider the less ambitious investors to be the ones …

In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …

consumption in any present or future state of nature (good or bad). As a result the degree of loss aversion does not directly … present value of its endowment income, then the household cannot avoid experiencing a relative loss in consumption, either now … or in the future. As a result, loss aversion directly affects consumption and risky investment. Reference levels play a …