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 …

when payments are delayed into the future. We refer to this phenomenon as Hyperopic Loss Aversion and provide experimental … attributed to Hyperopic Loss Aversion in our design, as a delay does not change the valuation of either pure gain and pure loss … lotteries. Finally, we apply the notion of Hyperopic Loss Aversion to investment decisions and show that it offers a novel …

subjective ratings behave relative to expected portfolio returns and experienced portfolio returns. Loss aversion is strong for … evaluating experienced returns, the effect diminishes by more than half and is well below commonly found loss aversion … coefficients. This suggests that a large part of investors' financial loss aversion results from an affective forecasting error …

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 …

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 …

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 …

reference level and the degree of loss aversion. Among others we find that the household increases its exposure to risky assets …