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The Disposition Effect and Individual Investor Decisions: The Roles of Regret and Counterfactual Alternatives

In: Handbook of Behavioral Finance

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  • Suzanne O’Curry Fogel
  • Thomas Berry

Abstract

The Handbook of Behavioral Finance is a comprehensive, topical and concise source of cutting-edge research on recent developments in behavioral finance.

Suggested Citation

  • Suzanne O’Curry Fogel & Thomas Berry, 2010. "The Disposition Effect and Individual Investor Decisions: The Roles of Regret and Counterfactual Alternatives," Chapters, in: Brian Bruce (ed.), Handbook of Behavioral Finance, chapter 4, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:13629_4
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    References listed on IDEAS

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    1. Thaler, Richard H & Shefrin, H M, 1981. "An Economic Theory of Self-Control," Journal of Political Economy, University of Chicago Press, vol. 89(2), pages 392-406, April.
    2. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
    3. Terrance Odean, 1998. "Are Investors Reluctant to Realize Their Losses?," Journal of Finance, American Finance Association, vol. 53(5), pages 1775-1798, October.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Weber, Martin & Camerer, Colin F., 1998. "The disposition effect in securities trading: an experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 167-184, January.
    6. Connolly, Terry & Ordonatez, Lisa D. & Coughlan, Richard, 1997. "Regret and Responsibility in the Evaluation of Decision Outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 70(1), pages 73-85, April.
    7. Ferris, Stephen P & Haugen, Robert A & Makhija, Anil K, 1988. " Predicting Contemporary Volume with Historic Volume at Differential Price Levels: Evidence Supporting the Disposition Effect," Journal of Finance, American Finance Association, vol. 43(3), pages 677-697, July.
    8. Cooke, Alan D J & Meyvis, Tom & Schwartz, Alan, 2001. "Avoiding Future Regret in Purchase-Timing Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(4), pages 447-459, March.
    9. Ritov, Ilana & Baron, Jonathan, 1995. "Outcome Knowledge, Regret, and Omission Bias," Organizational Behavior and Human Decision Processes, Elsevier, vol. 64(2), pages 119-127, November.
    10. Constantinides, George M, 1983. "Capital Market Equilibrium with Personal Tax," Econometrica, Econometric Society, vol. 51(3), pages 611-636, May.
    11. Shefrin, Hersh & Statman, Meir, 1985. "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence," Journal of Finance, American Finance Association, vol. 40(3), pages 777-790, July.
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