Framing Effects, Selective Information and Market Behavior: An Experimental Analysis
In: Handbook of Behavioral Finance
Author
Abstract
Suggested Citation
Download full text from publisher
Other versions of this item:
- Erich Kirchler & Boris Maciejovsky & Martin Weber, 2004. "Framing Effects, Selective Information and Market Behavior An Experimental Analysis ," Papers on Strategic Interaction 2004-16, Max Planck Institute of Economics, Strategic Interaction Group.
References listed on IDEAS
- Kuhberger, Anton, 1995. "The Framing of Decisions: A New Look at Old Problems," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(2), pages 230-240, May.
- Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
- Quiggin, John, 1982. "A theory of anticipated utility," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 323-343, December.
- Terrance Odean, 1998.
"Are Investors Reluctant to Realize Their Losses?,"
Journal of Finance,
American Finance Association, vol. 53(5), pages 1775-1798, October.
- Terrance Odean., 1996. "Are Investors Reluctant to Realize Their Losses?," Research Program in Finance Working Papers RPF-269, University of California at Berkeley.
- Boris Maciejovsky & Tarek El-Sehitya & Hans Haumerb & Christian Helmensteinc & Erich Kirchlerd, "undated". "Hindsight Bias and Individual Risk Attitude within the Context of Experimental Asset Markets," Papers on Strategic Interaction 2002-16, Max Planck Institute of Economics, Strategic Interaction Group.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- Sunder, S., 1992. "Experimental Asset Markets: A Survey," GSIA Working Papers 1992-19, Carnegie Mellon University, Tepper School of Business.
- Kuhberger, Anton, 1998. "The Influence of Framing on Risky Decisions: A Meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 75(1), pages 23-55, July.
- Weber, Martin & Keppe, Hans-Jurgen & Meyer-Delius, Gabriela, 2000. "The impact of endowment framing on market prices -- an experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 41(2), pages 159-176, February.
- Shefrin, Hersh & Statman, Meir, 1985. "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence," Journal of Finance, American Finance Association, vol. 40(3), pages 777-790, July.
- Choi, James J. & Laibson, David & Metrick, Andrew, 2002. "How does the Internet affect trading? Evidence from investor behavior in 401(k) plans," Journal of Financial Economics, Elsevier, vol. 64(3), pages 397-421, June.
- Fellner, Gerlinde & Maciejovsky, Boris, 2007.
"Risk attitude and market behavior: Evidence from experimental asset markets,"
Journal of Economic Psychology, Elsevier, vol. 28(3), pages 338-350, June.
- Gerlinde Fellner & Boris Maciejovsky, "undated". "Risk Attitude and Market Behavior: Evidence from Experimental Asset Markets," Papers on Strategic Interaction 2002-34, Max Planck Institute of Economics, Strategic Interaction Group.
- Brad M. Barber & Terrance Odean, 2001. "The Internet and the Investor," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 41-54, Winter.
- Weber, Martin & Camerer, Colin F., 1998.
"The disposition effect in securities trading: an experimental analysis,"
Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 167-184, January.
- Weber, Martin & Camerer, Colin F., 1991. "The disposition effect in securities trading: An experimental analysis," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 276, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
- Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 1999. "The Effects of Framing, Reflection, Probability, and Payoff on Risk Preference in Choice Tasks, ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 78(3), pages 204-231, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Youki Kohsaka & Grzegorz Mardyla & Shinji Takenaka & Yoshiro Tsutsui, 2017.
"Disposition Effect and Diminishing Sensitivity: An Analysis Based on a Simulated Experimental Stock Market,"
Journal of Behavioral Finance, Taylor & Francis Journals, vol. 18(2), pages 189-201, April.
- Kohsaka Youki & Grzegorz Mardyla & Shinji Takenaka & Yoshiro Tsutsui, 2013. "Disposition Effect and Diminishing Sensitivity: An Analysis Based on a Simulated Experimental Stock Market," Discussion Papers in Economics and Business 13-02-Rev.2, Osaka University, Graduate School of Economics, revised Sep 2014.
- James Alm & Erich Kirchler & Stephan Muehlbacher, 2012.
"Combining Psychology and Economics in the Analysis of Compliance: From Enforcement to Cooperation,"
Economic Analysis and Policy, Elsevier, vol. 42(2), pages 133-152, September.
- Erich Kirchler & Stephan Muehlbacher & Katharina Gangl & Eva Hofmann & Christoph Kogler & Maria Pollai & James Alm, 2012. "Combining Psychology and Economics in the Analysis of Compliance: From Enforcement to Cooperation," Working Papers 1212, Tulane University, Department of Economics.
- Kohsaka Youki & Grzegorz Mardyla & Shinji Takenaka & Yoshiro Tsutsui, 2013.
"Disposition Effect and Loss Aversion: An Analysis Based on a Simulated Experimental Stock Market,"
Discussion Papers in Economics and Business
13-02, Osaka University, Graduate School of Economics.
- Kohsaka Youki & Grzegorz Mardyla & Shinji Takenaka & Yoshiro Tsutsui, 2013. "Disposition Effect and Loss Aversion: An Analysis Based on a Simulated Experimental Stock Market," Discussion Papers in Economics and Business 13-02-Rev, Osaka University, Graduate School of Economics, revised Apr 2013.
- James Alm & Erich Kirchler & Stephan Muehlbacher & Katharina Gangl & Eva Hofmann & Christoph Kogler & Maria Pollai, 2012. "Rethinking the Research Paradigms for Analysing Tax Compliance Behaviour," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(2), pages 33-40, July.
- James Alm & Erich Kirchler & Stephan Muehlbacher & Katharina Gangl & Eva Hofmann & Christoph Kogler & Maria Pollai, 2012.
"Rethinking the Research Paradigms for Analysing Tax Compliance Behaviour,"
CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 33-40, July.
- James Alm & Erich Kirchler & Stephan Muehlbacher & Katharina Gangl & Eva Hofmann & Christoph Kogler & Maria Pollai, 2012. "Rethinking the Research Paradigms for Analyzing Tax Compliance Behavior," Working Papers 1210, Tulane University, Department of Economics.
- Charles N. Noussair & Steven Tucker, 2013.
"Experimental Research On Asset Pricing,"
Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 554-569, July.
- Noussair, C.N. & Tucker, S., 2013. "Experimental Research On Asset Pricing," Discussion Paper 2013-020, Tilburg University, Center for Economic Research.
- Noussair, C.N. & Tucker, S., 2013. "Experimental Research On Asset Pricing," Other publications TiSEM d5f4235c-17a8-407b-800b-2, Tilburg University, School of Economics and Management.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Jakusch, Sven Thorsten & Meyer, Steffen & Hackethal, Andreas, 2019. "Taming models of prospect theory in the wild? Estimation of Vlcek and Hens (2011)," SAFE Working Paper Series 146, Leibniz Institute for Financial Research SAFE, revised 2019.
- Markus Dertwinkel-Kalt & Jonas Frey, 2020. "Optimal Stopping in a Dynamic Salience Model," CESifo Working Paper Series 8496, CESifo.
- Jakusch, Sven Thorsten, 2017. "On the applicability of maximum likelihood methods: From experimental to financial data," SAFE Working Paper Series 148, Leibniz Institute for Financial Research SAFE, revised 2017.
- repec:cup:judgdm:v:12:y:2017:i:2:p:118-127 is not listed on IDEAS
- Weber, Martin & Welfens, Frank, 2007.
"How do Markets React to Fundamental Shocks? An Experimental Analysis on Underreaction and Momentum,"
Sonderforschungsbereich 504 Publications
07-42, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Weber, Martin & Welfens, Frank, 2007. "How do markets react to fundamental shocks? : An experimental analysis on underreaction and momentum," Papers 07-42, Sonderforschungsbreich 504.
- Lucks, Konstantin, 2016. "The Impact of Self-Control on Investment Decisions," MPRA Paper 73099, University Library of Munich, Germany.
- Matteo Ploner, 2017.
"Hold on to it? An experimental analysis of the disposition effect,"
Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(2), pages 118-127, March.
- Matteo Ploner, 2014. "Hold on to it? An Experimental Analysis of the Disposition Effect," CEEL Working Papers 1405, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
- Christoph Merkle & Jan Müller-Dethard & Martin Weber, 2021. "Closing a mental account: the realization effect for gains and losses," Experimental Economics, Springer;Economic Science Association, vol. 24(1), pages 303-329, March.
- Tianyang Wang & Robert G. Schwebach & Sriram V. Villupuram, 2022. "Reference point formation: Does the market whisper in the background?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 45(2), pages 384-421, June.
- Shoji, Isao & Kanehiro, Sumei, 2016. "Disposition effect as a behavioral trading activity elicited by investors' different risk preferences," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 104-112.
- Lovric, M. & Kaymak, U. & Spronk, J., 2008. "A Conceptual Model of Investor Behavior," ERIM Report Series Research in Management ERS-2008-030-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Youki Kohsaka & Grzegorz Mardyla & Shinji Takenaka & Yoshiro Tsutsui, 2017.
"Disposition Effect and Diminishing Sensitivity: An Analysis Based on a Simulated Experimental Stock Market,"
Journal of Behavioral Finance, Taylor & Francis Journals, vol. 18(2), pages 189-201, April.
- Kohsaka Youki & Grzegorz Mardyla & Shinji Takenaka & Yoshiro Tsutsui, 2013. "Disposition Effect and Diminishing Sensitivity: An Analysis Based on a Simulated Experimental Stock Market," Discussion Papers in Economics and Business 13-02-Rev.2, Osaka University, Graduate School of Economics, revised Sep 2014.
- Jonathan E. Ingersoll Jr. & Lawrence J. Jin, 2014. "Realization Utility with Reference-Dependent Preferences," Papers 1408.2859, arXiv.org.
- K.S. Muehlfeld & G.U. Weitzel & A. van Witteloostuijn, 2012. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Working Papers 12-18, Utrecht School of Economics.
- Weber, Martin & Welfens, Frank, 2007.
"The repurchase behavior of individual investors : an experimental investigation,"
Papers
07-44, Sonderforschungsbreich 504.
- Weber, Martin & Welfens, Frank, 2007. "The Repurchase Behavior of Individual Investors: An Experimental Investigation," Sonderforschungsbereich 504 Publications 07-44, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Enrico Giorgi & Thorsten Hens, 2006.
"Making prospect theory fit for finance,"
Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 20(3), pages 339-360, September.
- De Giorgi, Enrico & Hens, Thorsten, 2005. "Making Prospect Theory Fit for Finance," Discussion Papers 2005/19, Norwegian School of Economics, Department of Business and Management Science.
- Panagiotis Andrikopoulos & Nick Webber, 2019. "Understanding time-inconsistent heterogeneous preferences in economics and finance: a practice theory approach," Annals of Operations Research, Springer, vol. 282(1), pages 3-26, November.
- Mirjam Lehenkari & Jukka Perttunen, 2010. "Holding on to the Losers: Finnish Evidence," Chapters, in: Brian Bruce (ed.), Handbook of Behavioral Finance, chapter 17, Edward Elgar Publishing.
- Lukas, Moritz & Nöth, Markus, 2021. "Interest rate fixation periods and reference points," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
- Hermann, Daniel & Mußhoff, Oliver & Rau, Holger A., 2019.
"The disposition effect when deciding on behalf of others,"
Journal of Economic Psychology, Elsevier, vol. 74(C).
- Hermann, Daniel & Mußhoff, Oliver & Rau, Holger A., 2017. "The disposition effect when deciding on behalf of others," University of Göttingen Working Papers in Economics 332, University of Goettingen, Department of Economics.
- Urs Fischbacher & Gerson Hoffmann & Simeon Schudy, 2017.
"The Causal Effect of Stop-Loss and Take-Gain Orders on the Disposition Effect,"
The Review of Financial Studies, Society for Financial Studies, vol. 30(6), pages 2110-2129.
- Urs Fischbacher & Gerson Hoffmann & Simeon Schudy, 2014. "The causal effect of stop-loss and take-gain orders on the disposition effect," TWI Research Paper Series 89, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
- Urs Fischbacher & Gerson Hoffmann & Simeon Schudy, 2014. "The Causal Effect of Stop-Loss and Take-Gain Orders on the Disposition Effect," Working Paper Series of the Department of Economics, University of Konstanz 2014-10, Department of Economics, University of Konstanz.
- Fischbacher, Urs & Hoffmann, Gerson & Schudy, Simeon, 2017. "The Causal Effect of Stop-Loss and Take-Gain Orders on the Disposition Effect," Munich Reprints in Economics 49926, University of Munich, Department of Economics.
More about this item
Keywords
Economics and Finance;JEL classification:
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:13629_1. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.