Does binding or feedback influence myopic loss aversion : an experimental analysis

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URL:	http://ub-madoc.bib.uni-mannheim.de/2766
URN:	urn:nbn:de:bsz:180-madoc-27666
Document Type:	Working paper
Year of publication:	2003
The title of a journal, publication series:	None
Publication language:	English
Institution:	School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series:	Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject:	300 Social sciences, sociology, anthropology
Subject headings (SWD):	Risikoaversion , Investition , Intertemporale Allokation , Entscheidung bei Risiko
Keywords (English):	intertemporal decision making , myopic loss aversion , feedback frequency , length of commitment , evaluation period
Abstract:	Empirical research has shown that a lower feedback frequency combined with a longer bind-ing period decreases myopia and thereby increases the willingness to invest into a risky asset. In an experimental study, we disentangle the intertwined manipulation of feedback frequency and binding period to analyze how both variables alone contribute to the change in myopia and how they interact. We find a strong effect for the length of commitment, a much less pro-nounced effect for the feedback frequency, and a strong interaction between both variables. The results have important implications for real world intertemporal decision making.
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BASE: Langer, Thomas ; Weber, Martin

Google Scholar: Langer, Thomas ; Weber, Martin

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