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- Title
AN EXPERIMENT ON RISK TAKING AND EVALUATION PERIODS.
- Authors
Gneezy, Uri; Potters, Jan
- Abstract
Does the period over which individuals evaluate outcomes influence their investment in risky assets? Results from this study show that the more frequently returns are evaluated, the more risk averse investors will be. The results are in line with the behavioral hypothesis of "myopic loss aversion," which assumes that people are myopic in evaluating outcomes over time, and are more sensitive to losses than to gains. The results have relevance for the equity premium puzzle, and also for the marketing strategies of fund managers.
- Subjects
INVESTMENT analysis; INVESTMENTS; FINANCIAL executives; RISK-taking behavior; DECISION making; ASSETS (Accounting); MARKETING strategy; FINANCE; PSYCHOLOGY
- Publication
Quarterly Journal of Economics, 1997, Vol 112, Issue 2, p631
- ISSN
0033-5533
- Publication type
Article
- DOI
10.1162/003355397555217