In marketing, there has been extensive empirical research to ascertain whether there is evidence of loss aversion as predicted by several reference price preferences theories. Most of that literature nds that there is indeed evidence of loss aversion for many di erent goods. I argue that it is possible that some of that evidence seemingly supporting loss aversion arises because price endogeneit...

This paper evolves trading strategies using genetic programming on high-frequency tick data of the USDEUR exchange rate covering the calendar year 2006. This paper proposes a novel quad tree structure for trading system design. The architecture consists of four trees each solving a separate task, but mutually dependent for overall performance. Specifically, the functions of the trees are relate...

Behavioral economics has demonstrated systematic decision-making biases in both lab and field data. Do these biases extend across contexts, cultures, or even species? We investigate this question by introducing fiat currency and trade to a colony of capuchin monkeys and recovering their preferences over a range of goods and gambles. We show that capuchins react rationally to both price and weal...

The principle of loss aversion is thought to explain a wide range of anomalous phenomena involving tradeoffs between losses and gains. In this article, I show that the anomalies loss aversion was introduced to explain — the risky bet premium, the endowment effect, and the status-quo bias — are characterized not only by a loss/gain tradeoff, but by a tradeoff between the status-quo and change; a...

The present study first investigates the asymmetry of speedup - delay (gain and loss) and Sign Effect in Tehran Stock Exchange, then examine the effect of gender on the discount rate and explain it with the loss aversion. The sample is 403 investors in Tehran Stock Exchange, and the nonparametric Tests are used to test the research hypotheses. The research results show that there is an asymmetr...

When participating in the financial market, few investors can sustainably succeed most of them often make psychological mistakes that lead to failure. The article applies theories and synthesizes empirical studies analyze common individual traders based on theory behavioral finance, including: prospect theory, herding effect, house money sunk costs, overconfidence. uses qualitative methods comb...

Decision making under risk entails the anticipation of prospective outcomes, typically leading to the greater sensitivity to losses than gains known as loss aversion. Previous studies on the neural bases of choice-outcome anticipation and loss aversion provided inconsistent results, showing either bidirectional mesolimbic responses of activation for gains and deactivation for losses, or a speci...

BACKGROUND Decisions made on behalf of other people are sometimes more rational than those made for oneself. In this study we used a monetary gambling task to ask if the framing effect in decision-making is reduced in surrogate decision-making. METHODS Participants made a series of choices between a predetermined sure option and a risky gambling option of winning a proportion of an initial st...