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

Thomas Langer and Martin Weber

No 03-20, Papers from Sonderforschungsbreich 504

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.

Keywords: intertemporal decision making; myopic loss aversion; feedback frequency; length of commitment; evaluation period (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://madoc.bib.uni-mannheim.de/2766/1/dp03_20.pdf

Related works:
Working Paper: Does Binding of Feedback Influence Myopic Loss Aversion? An Experimental Analysis (2003)
Working Paper: Does Binding or Feeback Influence Myopic Loss Aversion - An Experimental Analysis (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mnh:spaper:2766

Access Statistics for this paper

More papers in Papers from Sonderforschungsbreich 504 Contact information at EDIRC.
Bibliographic data for series maintained by Katharina Rautenberg ().