Combatting Myopic Loss Aversion
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2024-07-03
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en
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This experimental study introduces an advice intervention to combat myopic loss aversion behaviour in a repeated lottery setting. The experiment uses an endowment, which can be used to bet in a lottery. Participants face different feedback frequencies and some individuals receive advice based on preferences elicited in the experiment. No myopic loss aversion effect is found, which is inconsistent with existing literature. The results present mixed evidence of the effectiveness of advice to get individuals towards their optimal investment level. Low confident individuals deviate more from the advised amount than individuals with higher confidence levels. Additionally, receiving advice does not appear to increase confidence levels after making the final investment decision.
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Faculteit der Managementwetenschappen