scholarly journals SELLING LOSERS AND WINNERS: A TEST OF THE DISPOSITION AND HOUSE MONEY EFFECT

2018 ◽  
Author(s):  
Pi-Hsia Yen
Keyword(s):  
House Money Effect

House Money Effect

2015 ◽  
pp. 352-355
Author(s):  
Rolf Dobelli
Keyword(s):  
House Money Effect

scholarly journals An Experimental Examination of the House Money Effect in a Multi-Period Setting

2003 ◽  
Author(s):  
Lucy F. Ackert ◽  
Narat Charupat ◽  
Bryan K. Church ◽  
Richard Deaves
Keyword(s):  
Experimental Examination ◽  
House Money Effect

Inequality aversion and the house money effect

2011 ◽  
Vol 15 (3) ◽  
pp. 460-484 ◽  
Author(s):  
Astrid Dannenberg ◽  
Thomas Riechmann ◽  
Bodo Sturm ◽  
Carsten Vogt
Keyword(s):  
Inequality Aversion ◽  
House Money Effect

scholarly journals Do casinos pay their customers to become risk-averse? Revising the house money effect in a field experiment

2016 ◽  
Vol 20 (3) ◽  
pp. 736-754 ◽  
Author(s):  
Maximilian Rüdisser ◽  
Raphael Flepp ◽  
Egon Franck
Keyword(s):  
Field Experiment ◽  
Risk Averse ◽  
House Money Effect

scholarly journals The house money effect and negative reciprocity

2015 ◽  
Vol 48 ◽  
pp. 60-71 ◽  
Author(s):  
Katarína Danková ◽  
Maroš Servátka
Keyword(s):  
House Money Effect ◽  
Negative Reciprocity

scholarly journals Investors’ Risk Preference Characteristics Based on Different Reference Point

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Fenghua Wen ◽  
Zhifang He ◽  
Xu Gong ◽  
Aiming Liu
Keyword(s):  
Stock Market ◽  
Risk Aversion ◽  
Empirical Evidence ◽  
Reference Point ◽  
Risk Preference ◽  
Reference Points ◽  
Time Varying ◽  
Explanatory Variables ◽  
House Money Effect ◽  
Two Factors

Taking the stock market as a whole object, we assume that prior losses and gains are two different factors that can influence risk preference separately. The two factors are introduced as separate explanatory variables into the time-varying GARCH-M (TVRA-GARCH-M) model. Then, we redefine prior losses and gains by selecting different reference point to study investors’ time-varying risk preference. The empirical evidence shows that investors’ risk preference is time varying and is influenced by previous outcomes; the stock market as a whole exhibits house money effect; that is, prior gains can decrease investors’ risk aversion while prior losses increase their risk aversion. Besides, different reference points selected by investors will cause different valuation of prior losses and gains, thus affecting investors’ risk preference.

scholarly journals How Situation Affects Risk Taking Behavior

2020 ◽  
Vol 8 (06) ◽  
pp. 1870-1875
Author(s):  
Dr. Yanuar Dananjaya
Keyword(s):  
Prospect Theory ◽  
Risk Taking ◽  
Company Performance ◽  
Human Beings ◽  
Reflection Effect ◽  
Negative Relation ◽  
Asset Risk ◽  
House Money Effect ◽  
Increased Risk ◽  
Risk Taking Behavior

This paper examines how situation affects risk taking behavior. Two theories predict different outcomes on the effect of situation to risk taking. House Money Effect predicts that positive situation will result in increased risk taking due to availability of slack that can be risked. On the other hand, negative situation will decrease risk taking because of reduced slack. Thus House Money Effect describes positive relation between situation and risk taking behavior. On the contrary according to Reflection Effect from Prospect Theory, human beings are risk averse in gain situation but risk seeking in loss situation. Reflection Effect thus predicts that positive situation will result in decreased risk taking while negative situation will result in increased risk taking, in other word negative relation between situation and risk taking. To test which theory better describes the relation between situation and risk taking behavior, we examine how company performance affects risk taking behavior of the top management. Company performance is proxied using Return of Asset. Risk taking behavior is proxied using change of debt level. The result shows negative relation between situation and risk taking, and thus support Reflection Effect in Prospect Theory.

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