Abstract

  


 



Buying Winners While Holding on to Losers: An Experimental Study of Investors’ Behavior


Anna Dodonova


University of Ottawa - Telfer School of Management

Yuri Khoroshilov


University of Ottawa, Telfer School of Management
May 18, 2007

Economics Bulletin, Vol. 7, No. 8, pp. 1-8, 2007

Abstract:     
This paper presents the results of an experimental study aimed to understand how the past stock performance affects investor’s desire to buy or sell the stock. It shows that people prefer to buy stocks that performed well in the past. However, when investors must sell one of the stocks they already own, their desire to have their funds invested into the past winner significantly diminishes, which may be due to their reluctance to realize their losses.

Number of Pages in PDF File: 8

Keywords: Experimental Economics, Investors behavior, trend-chasing

JEL Classification: G11

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Date posted: April 10, 2010  

Suggested Citation

Dodonova, Anna and Khoroshilov, Yuri, Buying Winners While Holding on to Losers: An Experimental Study of Investors’ Behavior (May 18, 2007). Economics Bulletin, Vol. 7, No. 8, pp. 1-8, 2007. Available at SSRN: http://ssrn.com/abstract=1587443

Contact Information

Anna Dodonova
University of Ottawa - Telfer School of Management ( email )
136 Jean-Jacques Lussier Street
Ottawa, Ontario K1N 6N5
Canada
(613) 562 5800 + 4912 (Phone)
Yuri Khoroshilov (Contact Author)
University of Ottawa, Telfer School of Management ( email )
55 E. Laurier
Ottawa, Ontario K1N 6N5
Canada
613-562-5800, ext. 4768 (Phone)
Feedback to SSRN (Beta)


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