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Asymmetric learning and the disposition effect

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  • Ahn, Yongkil

Abstract

I analyze the complete trading records and investor experience survey answers of 230,891 retail investors in Korea and find that individual investors learn more in the gain domain than in the loss domain. This asymmetric learning effect causes the magnitude of the disposition effect to diminish over time.

Suggested Citation

  • Ahn, Yongkil, 2020. "Asymmetric learning and the disposition effect," Economics Letters, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:ecolet:v:190:y:2020:i:c:s016517652030077x
    DOI: 10.1016/j.econlet.2020.109080
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    References listed on IDEAS

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    1. Ahn, Yongkil, 2024. "Optimal stopping decisions and the disposition effect," Journal of Behavioral and Experimental Finance, Elsevier, vol. 42(C).

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    More about this item

    Keywords

    Disposition effects; Asymmetric learning; Counterfactual thinking; Field study;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • G40 - Financial Economics - - Behavioral Finance - - - General

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