Replication data for: Testing for the Disposition Effect on Optimal Stopping Decisions
- Magnani, Jacopo
AbstractThis paper develops a new laboratory test of the hypothesis that individual investors sell winners too early and ride losers too long. In the experiment, subjects invest in a risky asset, whose price evolves in near-continuous time, and they are provided with the option to liquidate it at a fixed salvage value. Optimal behavior is characterized by an upper and a lower stopping thresholds in the asset price space, thus producing a clear rational benchmark and eliminating known confounds. This design allows me to detect and quantify the disposition effect in a sample of 108 subjects.
Is supplement to
DOI: 10.1257/aer.p20151039 (Text)
Magnani, Jacopo. “Testing for the Disposition Effect on Optimal Stopping Decisions.” American Economic Review 105, no. 5 (May 2015): 371–75. https://doi.org/10.1257/aer.p20151039.
- ID: 10.1257/aer.p20151039 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07