Salience and the Disposition Effect: Evidence from the Introduction of 'Cash-Outs' in Betting Markets.

The disposition effect describes the tendency of investors to sell assets that have increased in value since purchase, and hold those that have not. We analyze the introduction of betting market 'Cash-Outs,' which provide a continual update-and therefore increase the salience-of bettors' paper profi...

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Publicado en:Southern Economic Journal Vol. 83; no. 4; pp. 1052 - 1074
Autores principales: Brown, Alasdair, Yang, Fuyu
Formato: Artículo
Publicado: Wiley-Blackwell Apr2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Salience and the Disposition Effect: Evidence from the Introduction of 'Cash-Outs' in Betting Markets.
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        au:
          Brown, Alasdair
          Yang, Fuyu
        affil: School of Economics, University of East Anglia, Norwich NR4 7TJ, UK
      su:
        Investors
        Prices
        Businesspeople
        Gambling
        Aleatory contracts
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        subj:
          Investors
          Prices
          Businesspeople
          Other Gambling Industries
          Gambling
          Aleatory contracts
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      ab: The disposition effect describes the tendency of investors to sell assets that have increased in value since purchase, and hold those that have not. We analyze the introduction of betting market 'Cash-Outs,' which provide a continual update-and therefore increase the salience-of bettors' paper profits/losses on each bet. We find that the introduction of Cash-Out increased the disposition effect in this market, as punters sold their profitable bets with greater frequency than before. We do not, however, find that the disposition effect has any impact on asset prices, either before or after this intervention.
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    language: English
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