Prior Consequences and Subsequent Risk Taking: New Field Evidence from the Taiwan Futures Exchange

References

• Ackert L., Charupat N., Church B., Deaves R. An experimental examination of the house money effect in a multi-period setting. Experiment. Econom. (2006) 9(1):5–16Crossref, Google Scholar
• Barber B., Odean T., Zhu N. Do retail trades move markets? Rev. Financial Stud. (2009a) 22(1):151–186Crossref, Google Scholar
• Barber B., Odean T., Zhu N. Systematic noise. J. Financial Markets (2009b) 12(4):547–569Crossref, Google Scholar
• Barberis N., Xiong W. What drives the disposition effect? An analysis of long-standing preference-based explanation. J. Finance (2009) 64(2):751–784Crossref, Google Scholar
• Barberis N., Xiong W. Realization utility. (2010) . Working paper, Yale University, New Haven, CTGoogle Scholar
• Barberis N., Huang M., Santos T. Prospect theory and asset prices. Quart. J. Econom. (2001) 116(1):1–53Crossref, Google Scholar
• Barberis N., Huang M., Thaler R. Individual preferences, monetary gambles and stock market participation: A case for narrow framing. Amer. Econom. Rev. (2006) 96(4):1069–1090Crossref, Google Scholar
• Battalio R. C., Kagel J. H., Jiranyakul K. Testing between alternative models of choice under uncertainty: Some initial results. J. Risk Uncertainty (1990) 3(1):25–50Crossref, Google Scholar
• Benartzi S., Thaler R. Myopic loss aversion and the equity premium puzzle. Quart. J. Econom. (1995) 110(1):73–92Crossref, Google Scholar
• Chevalier J., Ellison G. Risk taking by mutual funds as a response to incentives. J. Political Econom. (1997) 105(6):1167–1200Crossref, Google Scholar
• Cook R. D., Weisberg S.Residuals and Influence in Regression (1983) (Chapman and Hall, New York) Google Scholar
• Coval J. D., Shumway T. Do behavioral biases affect prices? J. Finance (2005) 60(1):1–34Crossref, Google Scholar
• Daniel K., Hirshleifer D., Subrahmanyam A. Investor psychology and security market under- and over-reactions. J. Finance (1998) 53(6):1839–1885Crossref, Google Scholar
• Dhar R., Zhu N. Up close and personal: An individual level analysis of the disposition effect. Management Sci. (2006) 52(5):726–740Link, Google Scholar
• Genesove D., Mayer C. Nominal loss aversion and seller behavior: Evidence from the housing market. Quart. J. Econom. (2001) 116(4):1233–1260Crossref, Google Scholar
• Gervais S., Odean T. Learning to be overconfident. Rev. Financial Stud. (2001) 14(1):1–27Crossref, Google Scholar
• Gneezy U., Kapteyn A., Potters J. Evaluation and asset prices in a market experiment. J. Finance (2003) 58(2):821–837Crossref, Google Scholar
• Haigh M., List J. Do professional traders exhibit myopic loss aversion? An experimental analysis. J. Finance (2005) 9(1):523–535Crossref, Google Scholar
• Heath C., Steven H., Mark L. Psychological factors and stock option exercise. Quart. J. Econom. (1999) 114(2):601–627Crossref, Google Scholar
• Keasey K., Moon P. Gambling with the house money in capital expenditure decisions: An experimental analysis. Econom. Lett. (1996) 50(1):105–110Crossref, Google Scholar
• Kahneman D., Tversky A. Prospect theory: An analysis of decision making under risk. Econometrica (1979) 47(2):263–291Crossref, Google Scholar
• Lee Y., Liu Y., Zhu N. The costs of owning employer stocks: Lessons from Taiwan. J. Financial Quant. Anal. (2008) 43(3):717–740Crossref, Google Scholar
• Locke P., Mann S. C. Prior outcomes and risky choices by professional traders. (2003) . Working paper, George Washington University, Washington, DCGoogle Scholar
• Locke P., Mann S. C. Professional trader discipline and trade disposition. J. Financial Econom. (2005) 76(2):401–444Crossref, Google Scholar
• O'Connell P., Teo M. Institutional investors, past performance, and dynamic loss aversion. J. Financial Quant. Anal. (2009) 44(1):155–188Crossref, Google Scholar
• Odean T. Do investors trade too much? Amer. Econom. Rev. (1999) 89(5):1279–1298Crossref, Google Scholar
• Seasholes M., Zhu N. Individual investors and local bias. J. Finance (2010) . ForthcomingCrossref, Google Scholar
• Shleifer A.Inefficient Markets: An Introduction to Behavioural Finance (2000) (Oxford University Press, Oxford, UK) Crossref, Google Scholar
• Thaler R. Toward a positive theory of consumer choice. J. Econom. Bus. Organ. (1980) 1(1):39–60Crossref, Google Scholar
• Thaler R., Johnson E. Gambling with the house money and trying to break even: The effects of prior outcomes on risky choice. Management Sci. (1990) 36(6):643–660Link, Google Scholar
• Tversky A., Kahneman D. The framing of decisions and the psychology of choice. Science (1981) 211(1):453–458Crossref, Google Scholar
• Tversky A., Kahneman D. Advances in prospect theory: Cumulative representation of uncertainty. J. Risk Uncertainty (1992) 5(4):297–323Crossref, Google Scholar
• Weber M., Zuchel H. How do prior outcomes affect risk attitude? Comparing escalation of commitment and the house-money effect. Decision Anal. (2005) 2(1):30–43Link, Google Scholar