Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion

Detalhes bibliográficos
Autor(a) principal: Dorfner, Peter
Data de Publicação: 2018
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/48479
Resumo: Imagine an individual facing three identical investment decisions in a row. Each time she decides on how much to invest in a risky asset or save. Also, imagine the same individual deciding about three consecutive investments at once. Equal for rational investors, when suffering Myopic Loss Aversion, the latter scenario is perceived differently though: More is invested when payoffs are evaluated over a greater time horizon. Based on the theory of reference points I proposed a novel method – investment targets – to shift attention to longer-term goals. I find that exogenously proposed targets eliminate Myopic Loss Aversion in an experiment.
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spelling Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversionLaboratory experimentMyopic loss aversionEvaluation periodReference pointsImagine an individual facing three identical investment decisions in a row. Each time she decides on how much to invest in a risky asset or save. Also, imagine the same individual deciding about three consecutive investments at once. Equal for rational investors, when suffering Myopic Loss Aversion, the latter scenario is perceived differently though: More is invested when payoffs are evaluated over a greater time horizon. Based on the theory of reference points I proposed a novel method – investment targets – to shift attention to longer-term goals. I find that exogenously proposed targets eliminate Myopic Loss Aversion in an experiment.Coutts, AlexanderRUNDorfner, Peter2018-10-09T10:17:29Z2018-06-062018-06-06T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/48479TID:201974983enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:24:54Zoai:run.unl.pt:10362/48479Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:32:08.831425Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
title Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
spellingShingle Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
Dorfner, Peter
Laboratory experiment
Myopic loss aversion
Evaluation period
Reference points
title_short Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
title_full Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
title_fullStr Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
title_full_unstemmed Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
title_sort Is the equity premium puzzle just a lack of foresight? The impact of targeting on myopic loss a aversion
author Dorfner, Peter
author_facet Dorfner, Peter
author_role author
dc.contributor.none.fl_str_mv Coutts, Alexander
RUN
dc.contributor.author.fl_str_mv Dorfner, Peter
dc.subject.por.fl_str_mv Laboratory experiment
Myopic loss aversion
Evaluation period
Reference points
topic Laboratory experiment
Myopic loss aversion
Evaluation period
Reference points
description Imagine an individual facing three identical investment decisions in a row. Each time she decides on how much to invest in a risky asset or save. Also, imagine the same individual deciding about three consecutive investments at once. Equal for rational investors, when suffering Myopic Loss Aversion, the latter scenario is perceived differently though: More is invested when payoffs are evaluated over a greater time horizon. Based on the theory of reference points I proposed a novel method – investment targets – to shift attention to longer-term goals. I find that exogenously proposed targets eliminate Myopic Loss Aversion in an experiment.
publishDate 2018
dc.date.none.fl_str_mv 2018-10-09T10:17:29Z
2018-06-06
2018-06-06T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/48479
TID:201974983
url http://hdl.handle.net/10362/48479
identifier_str_mv TID:201974983
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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