The disposition effect: a survey

The disposition effect is a well-recognized behavioral economic phenomenon which has been studied in numerous papers during the last three decades. Besides a literature review of the major theoretical, empirical, and experimental papers, the body of academic literature is subjected to a bibliometric analysis where all papers are taken into account which can be found via the search engine “EBSCOhost” (589 hits). This paper not only extensively describes the state of the art of research on the topic of the disposition effect. The combination of insights from a content analysis as well as a bibliometric analysis serves as a case study on the pattern of diffusion of research hypotheses and research methods. For example, it can be shown that the number of publications per year on the disposition effect remained relatively low subsequent to its discovery and only later started to substantially grow over time. On the other hand, the quality of papers, as approximated by the share of “A” journal articles per year, decreased over time.