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The effect of short-term information on long-term investment: An experimental study

Author

Listed:
  • Benzion, Uri
  • Krupalnik, Lena
  • Rosenfeld, Ahron
  • Shahrabani, Shosh
  • Shavit, Tal

Abstract

We present a multi-trial experiment that extends the classic experiment of Thaler et al. (1997) by adding short-term information to long-term investment. The allocation to the risky asset is reduced in the long-term, when we add short-term information.

Suggested Citation

  • Benzion, Uri & Krupalnik, Lena & Rosenfeld, Ahron & Shahrabani, Shosh & Shavit, Tal, 2012. "The effect of short-term information on long-term investment: An experimental study," Economics Letters, Elsevier, vol. 116(1), pages 20-22.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:1:p:20-22
    DOI: 10.1016/j.econlet.2012.01.003
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    References listed on IDEAS

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    More about this item

    Keywords

    Myopic loss aversion; Regret; Multi-periods;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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