Investors’ previous experiences with a stock affect their willingness to repurchase the stock. Using detailed trades data from two brokers, Michal Strahilevitz, Terrance Odean, and Brad M. Barber document that investors are reluctant to repurchase stocks previously sold for a loss and to repurchase stocks that have risen in price subsequent to a prior sale. They […]
Tag Archives | behavioral economics
Video Friday: Let's Risk Being More Fully Ourselves in 2011
James McRitchie, 12/31/2010 ,
Conformity explores the issue at the root of groupthink by distilling over 7 decades of seminal studies into the psychology of group mentality. Hat tip to Simoleon Sense. We’re back from a month in China and India and have lots of work to catch up on but hope to begin posting regularly again in the […]
Cognitive Bias
James McRitchie, 05/07/2010 ,
With much of the low hanging fruit of “best practices” already agreed upon and institutionalized, Dan Boxer who is an Adjunct Professor of governance, ethics and social responsibility and co-chairs the Governance Symposium at the University of Maine Law School, is among those turning more attention to behavioral science impacts on corporate board decision making […]