Limits to Myopic loss aversion and learning

Marcleiton Ribeiro Morais, Camila Schoti, José Guilherme de Lara Resende and Benjamin Tabak

Economics Letters, 2023, vol. 229, issue C

Abstract: This paper investigates the effects of limiting the evaluation period in a typical experiment to measure myopic loss aversion (MLA). We corroborate previous results and found that the aggregation effect had diminishing returns. This indicates that there is a point where limiting investor access to the results of the portfolio ceases to yield a significant MLA. We also found evidence of a learning process occurring during the experiment.

Keywords: Myopic loss aversion; Prospect theory; Aggregation of results (search for similar items in EconPapers)
JEL-codes: C91 G11 G4 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:229:y:2023:i:c:s016517652300215x

DOI: 10.1016/j.econlet.2023.111190

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