Myopic Loss Aversion: Information Feedback vs. Investment Flexibility
11 Pages Posted: 25 Jul 2004
Date Written: March 10, 2004
We experimentally disentangle the effect of information feedback from the effect of investment flexibility on the investment behavior of a myopically loss averse investor. Our findings show that varying the information condition alone suffices to induce behavior that is in line with the hypothesis of Myopic Loss Aversion.
Keywords: Myopic loss aversion, information feedback, commitment, investment flexibility
JEL Classification: D81, C91
Suggested Citation: Suggested Citation