Hopfensitz, Astrid (2009): Previous outcomes and reference dependence: A meta study of repeated investment tasks with and without restricted feedback.
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When investment is repeated, previous outcomes (winning/losing) as well as the current budget level (gain/loss domain) influence decisions. The first is related to the so-called "gamblers fallacy". The second to value function relative to some reference point. Both effects have been extensively studied, however not their interaction. We present a meta-study of five experiments initially conducted to investigate myopic-loss-aversion. We observe that investment is related to the number of previous winning rounds as well as to the current budget position relative to a reference point. These effects persist when the analysis is extended to settings with restricted flexibility concerning investment.
|Item Type:||MPRA Paper|
|Original Title:||Previous outcomes and reference dependence: A meta study of repeated investment tasks with and without restricted feedback|
|Keywords:||reference point; gamblers fallacy; meta study; experiment; risk taking; myopic loss aversion|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
|Depositing User:||Astrid Hopfensitz|
|Date Deposited:||10. Jul 2009 00:28|
|Last Modified:||15. Feb 2013 23:07|
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