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Evaluation Periods and Asset Prices in a Market Experiment
Article first published online: 21 MAR 2003
DOI: 10.1111/1540-6261.00547
1540-6261/asset/cover.gif?v=1&s=5192ce61b1e4bde927ebc2df55b44b4da55ef137 "The Journal of Finance")
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How to Cite
Gneezy, U., Kapteyn, A. and Potters, J. (2003), Evaluation Periods and Asset Prices in a Market Experiment. The Journal of Finance, 58: 821–838. doi: 10.1111/1540-6261.00547
Publication History
- Issue published online: 21 MAR 2003
- Article first published online: 21 MAR 2003
- Abstract
- References
- Cited By
We test whether the frequency of feedback information about the performance of an investment portfolio and the flexibility with which the investor can change the portfolio influence her risk attitude in markets. In line with the prediction of myopic loss aversion (Benartzi and Thaler (1995)), we find that more information and more flexibility result in less risk taking. Market prices of risky assets are significantly higher if feedback frequency and decision flexibility are reduced. This result supports the findings from individual decision making, and shows that market interactions do not eliminate such behavior or its consequences for prices.