Starjournal Quotation Fellner, Gerlinde, Sutter, Matthias. 2009. Causes, consequences and cures of myopic loss aversion - An experimental examination. Economic Journal 119 (537): 900-916.


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Abstract

We examine in an experiment the causes, consequences and possible cures of myopic loss aversion (MLA) for investment behaviour under risk. We find that both, investment horizons and feedback frequency contribute almost equally to the effects of MLA. Longer investment horizons and less frequent feedback lead to higher investments. However, when given the choice, subjects prefer on average shorter investment horizons and more frequent feedback. Exploiting the status quo bias by setting a long investment horizon or low feedback frequency as a default turns out to be a successful behavioural intervention that increases investment levels.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Economic Journal
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title Causes, consequences and cures of myopic loss aversion - An experimental examination
Volume 119
Number 537
Year 2009
Page from 900
Page to 916
Reviewed? Y
URL http://www3.interscience.wiley.com/cgi-bin/fulltext/122263537/PDFSTART

Associations

People
Fellner, Gerlinde (Former researcher)
External
Sutter, Matthias (University of Innsbruck, Austria)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
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