Events
CEMAP seminar series: Investor Attention, Reference Points and the Disposition Effect
Speaker: Edika Quispe-Torreblanca (University of Oxford)
Abstract:
Studies of reference-dependent behaviour typically examine single reference points. Using data from an online brokerage, we examine the role of multiple reference points in trading behaviour. We show that, in addition to a traditional disposition effect for returns since purchase, there is also a disposition effect for returns since latest login, and a strong interaction between the two reference points: Even a tiny loss since the last login nullifies the positive effect of again since purchase. Given that logins are the product of a decision, these results highlight the importance of when people pay attention, with implications beyond investment decisions.
Credit to:
Edika Quispe-Torreblanca (University of Oxford)
John Gathergood (University of Nottingham)
George Loewenstein (Carnegie Mellon University)
Neil Stewart (Warwick Business School)
CEMAP seminar series: Investor Attention, Reference Points and the Disposition Effect
Speaker: Edika Quispe-Torreblanca (University of Oxford)
Abstract:
Studies of reference-dependent behaviour typically examine single reference points. Using data from an online brokerage, we examine the role of multiple reference points in trading behaviour. We show that, in addition to a traditional disposition effect for returns since purchase, there is also a disposition effect for returns since latest login, and a strong interaction between the two reference points: Even a tiny loss since the last login nullifies the positive effect of again since purchase. Given that logins are the product of a decision, these results highlight the importance of when people pay attention, with implications beyond investment decisions.
Credit to:
Edika Quispe-Torreblanca (University of Oxford)
John Gathergood (University of Nottingham)
George Loewenstein (Carnegie Mellon University)
Neil Stewart (Warwick Business School)
