Resource title

Causes, consequences, and cures of myopic loss aversion: an experimental investigation

Resource image

image for OpenScout resource :: Causes, consequences, and cures of myopic loss aversion: an experimental investigation

Resource description

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.

Resource author

Gerlinde Fellner, Matthias Sutter

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25688

Resource license

Adapt according to the presented license agreement and reference the original author.