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Hopfensitz, Astrid
(2009)
Previous Outcomes and Reference Dependence: A Meta Study of Repeated Investment Tasks with Restricted Feedback.
TSE Working Paper, n. 09-087
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Abstract
When investment is repeated, previous outcomes (winning/losing) as well as the current budget level (gain/loss domain) influence decisions. The first is related to the so-called "gamblers fallacy". The second to value function relative to some reference point. Both effects have been extensively studied, however not their interaction. We present a meta-study of five experiments initially conducted to investigate myopic-lossaversion. We observe that investment is related to the number of previous winning rounds as well as to the current budget position relative to a reference point. These effects persist when the analysis is extended to settings with restricted flexibility concerning investment.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | 30 September 2009 |
| Uncontrolled Keywords: | reference point, gamblers fallacy, meta study |
| JEL Classification: | C91 - Laboratory, Individual Behavior D81 - Criteria for Decision-Making under Risk and Uncertainty G11 - Portfolio Choice; Investment Decisions |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 18 Jan 2012 06:00 |
| Last Modified: | 18 Apr 2024 11:44 |
| OAI Identifier: | oai:tse-fr.eu:22194 |
| URI: | https://publications.ut-capitole.fr/id/eprint/3223 |
