Limits to Myopic Loss Aversion and Learning

Limits to Myopic Loss Aversion and Learning

• Autor
• Marcleiton Ribeiro Morais
• Co-autores
• Camila Schoti , José Guilherme de Lara Resende , Benjamin Miranda Tabak
• Resumo

• This paper investigates the effects of limiting the evaluation period in a typical experiment to measure myopic loss aversion (MLA). We corroborate previous results and found that the aggregation effect had diminishing returns. This indicates that there is a point where limiting investor access to the results of the portfolio ceases to yield a significant MLA. We also found evidence of a learning process occurring during the experiment.

• Palavras-chave
• Myopic Loss Aversion. Prospect Theory. Aggregation of Results
• Área Temática
• Asset pricing, investments, and Derivatives

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