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

Thomas D Berry; Suzanne Fogel

doi:10.1207/s15427579jpfm0702_5

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

Research output: Contribution to journal › Article › peer-review

Original language	American English
Journal	Journal of Behavioral Finance
Volume	7
DOIs	https://doi.org/10.1207/s15427579jpfm0702_5
State	Published - 2006

Disciplines

Behavioral Economics
Corporate Finance
Educational Assessment, Evaluation, and Research
Finance and Financial Management

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@article{92f63da7114e441d8864bd29eaf12da2,

title = "The Disposition Effect and Individual Investor Decisions: The Role of Regret and Counterfactual Alternatives",

author = "Berry, {Thomas D} and Suzanne Fogel",

note = "Recent studies have documented a strong tendency for individual investors to delay realizing capital losses, while realizing gains prematurely (Odean [1996], Shefrin and Statman [1985], Weber and Camerer [1996]). This tendency has been termed the {"}disposition effect.{"} The disposition effect is inconsistent with normative approaches to stock sales, such as those based on tax losses (see, for example, Constantinides [1983]).",

year = "2006",

doi = "10.1207/s15427579jpfm0702_5",

language = "American English",

volume = "7",

journal = "Journal of Behavioral Finance",

}

TY - JOUR

T1 - The Disposition Effect and Individual Investor Decisions: The Role of Regret and Counterfactual Alternatives

AU - Berry, Thomas D

AU - Fogel, Suzanne

N1 - Recent studies have documented a strong tendency for individual investors to delay realizing capital losses, while realizing gains prematurely (Odean [1996], Shefrin and Statman [1985], Weber and Camerer [1996]). This tendency has been termed the "disposition effect." The disposition effect is inconsistent with normative approaches to stock sales, such as those based on tax losses (see, for example, Constantinides [1983]).

PY - 2006

Y1 - 2006

UR - https://www.tandfonline.com/doi/abs/10.1207/s15427579jpfm0702_5

U2 - 10.1207/s15427579jpfm0702_5

DO - 10.1207/s15427579jpfm0702_5

M3 - Article

VL - 7

JO - Journal of Behavioral Finance

JF - Journal of Behavioral Finance

ER -

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

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