PARC Working Papers
Document Type
Working Paper
Date of this Version
7-1-2006
Abstract
We develop a dynamic portfolio choice model which incorporates anticipated regret and pride in individual's preferences and show that those preferences can cause investors to sell winning stocks and hold on to losing stocks; that is, anticipating regret and pride can help explain the disposition effect.
Keywords
Portfolio choice, Anticipated regret and pride, Individual preference, Disposition effect
COinS
Date Posted: 11 March 2008
Comments
Muermann, Alexander and Jacqueline M. Volkman. 2006. "Regret, Pride, and the Disposition Effect." PARC Working Paper Series, WPS 06-07.