The Role of Wealth in Gain and Loss Perception: An Empirical Analysis

Andrea Lippi

A chapter in Application of Decision Science in Business and Management from IntechOpen

Abstract: People with significantly different initial starting capitals may perceive gains and losses differently. In order to test this hypothesis, we consider and compare two samples of investors: retail investors as those with a maximum of EUR500,000 worth of assets under management (AUM) and private investors as those with more than EUR500,000 AUM. Based on the answers obtained from specifically devised questionnaires, we test the differences in gain and loss perception and check the level of satisfaction/dissatisfaction in situations of gain and loss. The results obtained demonstrate that private and retail investors perceive gains and losses differently.

Keywords: perception of gain; perception of loss; decision-making; private investors; retail investors (search for similar items in EconPapers)
JEL-codes: D7 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:199505

DOI: 10.5772/intechopen.86617

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