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http://hdl.handle.net/10419/25688
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| Title: | | Causes, consequences, and cures of myopic loss aversion: an experimental investigation  |
| Authors: | | Fellner, Gerlinde Sutter, Matthias |
| Issue Date: | | 2008 |
| Series/Report no.: | | Jena economic research papers 2008,004 |
| Abstract: | | We examine in an experiment the causes, consequences and possible cures of myopic loss aversion (MLA) for investment behaviour under risk. We find that both, investment horizons and feedback frequency contribute almost equally to the effects of MLA. Longer investment horizons and less frequent feedback lead to higher investments. However, when given the choice, subjects prefer on average shorter investment horizons and more frequent feedback. Exploiting the status quo bias by setting a long investment horizon or low feedback frequency as a default turns out to be a successful behavioural intervention that increases investment levels. |
| Subjects: | | myopic loss aversion risk investment experiment |
| JEL: | | C91 D80 G11 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Jena Economic Research Papers, MPI für Ökonomik
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