Diminishing marginal myopic loss aversion: A stress test on investment games experiments
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http://hdl.handle.net/10045/117233
Títol: | Diminishing marginal myopic loss aversion: A stress test on investment games experiments |
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Autors: | Ponti, Giovanni | Tomás Lucas, Josefa |
Grups d'investigació o GITE: | Microeconomía Aplicada (GIMA) | Análisis Económico |
Centre, Departament o Servei: | Universidad de Alicante. Departamento de Fundamentos del Análisis Económico |
Paraules clau: | Behavioral finance | Myopic loss aversion | Narrow bracketing |
Àrees de coneixement: | Fundamentos del Análisis Económico |
Data de publicació: | d’octubre-2021 |
Editor: | Elsevier |
Citació bibliogràfica: | Journal of Economic Behavior & Organization. 2021, 190: 125-133. https://doi.org/10.1016/j.jebo.2021.07.031 |
Resum: | We measure the marginal effects of two crucial dimensions of the Investment Game design of Gneezy and Potters (1997, GP97) and its replications: time frequency and time horizon. To this aim, we randomize between subjects five different time frequencies: 1 round (“High Frequency” in GP97), 3 rounds (“Low Frequency”), but also 6, 9 and 12 rounds. As for time horizon, we compare the baseline GP97 horizon (9 rounds) with smaller (3 and 6 rounds), but also higher (12 rounds) alternatives. We find that, holding the time horizon constant, subjects invest more when they evaluate their investments less frequently, but this result is significant only when time horizon is sufficiently long. We also find that lower frequencies increase the marginal investment at a decreasing rate. As for time horizon, we find that, holding time frequency constant, the higher the horizon, the lower the investment (although, as in the previous case, investment lowers at a decreasing rate). Our reduced form results also show that subjects’ behavior is sensitive to the endowment stock provided along the experiment, independently of time frequency. |
Patrocinadors: | Financial support from the Spanish Ministry of Science and Innovation (Grant PID2019-107081GB-I00) and Generalitat Valenciana (Research Projects Groups 3/086) is gratefully acknowledged. |
URI: | http://hdl.handle.net/10045/117233 |
ISSN: | 0167-2681 (Print) | 1879-1751 (Online) |
DOI: | 10.1016/j.jebo.2021.07.031 |
Idioma: | eng |
Tipus: | info:eu-repo/semantics/article |
Drets: | © 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/) |
Revisió científica: | si |
Versió de l'editor: | https://doi.org/10.1016/j.jebo.2021.07.031 |
Apareix a la col·lecció: | INV - GIMA - Artículos de Revistas INV - Análisis Económico - Artículos de Revistas |
Arxius per aquest ítem:
Arxiu | Descripció | Tamany | Format | |
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Ponti_Tomas_2021_JEconBehaviorOrg.pdf | 862,65 kB | Adobe PDF | Obrir Vista prèvia | |
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