The as-is journal review process: Let authors own their ideas
In this paper we present a two period model, where the agent's preferences are described by prospect theory as proposed by Kahneman and Tversky. We solve for the agent's portfolio decision. Our findings are that the changes in portfolio weights depend crucially on the reference point and the ratio between the reference point and the current wealth, and thus only indirectly on the performance of the risky asset. Our model explains why investor keep on holding, or even buy, loosing investments.
|Date of creation:||Apr 2006|
|Date of revision:|
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- Frey, Bruno S, 2003. "Publishing as Prostitution?--Choosing between One's Own Ideas and Academic Success," Public Choice, Springer, vol. 116(1-2), pages 205-23, July.
- Engers, Maxim & Gans, Joshua S, 1998. "Why Referees Are Not Paid (Enough)," American Economic Review, American Economic Association, vol. 88(5), pages 1341-49, December.
- R. K. Pachauri & Sujata Gupta, 2002. "Editorial," Climate Policy, Taylor & Francis Journals, vol. 2(2-3), pages 127-128, September.
- B Kogut & U Zander, 2003. "A memoir and reflection: knowledge and an evolutionary theory of the multinational firm 10 years later," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 505-515, November.
- R. Purdy, 2002. "Editorial," Climate Policy, Taylor & Francis Journals, vol. 2(1), pages 1-2, March.
- Glenn Ellison, 2000.
"The Slowdown of the Economics Publishing Process,"
NBER Working Papers
7804, National Bureau of Economic Research, Inc.
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