One cannot rule out investor psychology in causing this effect. This paper attempts to assess the relative importance of prospect theory and other explanations for the disposition effect. When one takes the purchase price as the reference price in the value function, then the implication of prospect theory is that the tendency to sell a stock should decline as the stock price moves away from the purchase price irrespective of the direction. The regressions are run for different holding periods, and they include a host of control variables, such as past returns. In contrast to the mean-reversion hypothesis, outperformance actually decreases selling for loss-making positions.
2001), proposing that the availability of expendable resources mitigates loss aversion. Carmon and Ariely (2000) suggest that the different perceptions of buyers and sellers underlie loss aversion; they find that directing buyers on the benefits of the object and sellers on alternative uses of money attenuates the endowment effect. Some research has even did away with loss aversion, either by centering on certain goods (e.g., exchange goods of fixed value show no loss aversion; Van Dijk and Van Knippenberg 1996) or by inducing emotions just before the value elicitation. For
Bystander Effect. In: R. Baumeister and K. Vohs, ed.. Encyclopedia of social psychology, 1st ed. Thousand Oaks, Calif: Sage Publications, pp.132-133. van Bommel, M., van Prooijen, J., Elffers, H., & Van Lange, P. (2012). Be aware to care: Public self-awareness leads to a reversal of the bystander effect.
In order to determine the appropriate size and presentation of a price reduction, it is important to gain insight into the consumers’ price perception processes (Teunter, 2002). She notes that three theories have particular relevance to sales promotion; that is threshold theory (Weber’s law), adaptation-level theory, and assimilation-contract theory. She states that threshold theory (Weber’s law) is concerned with the question of how much of a stimulus change is necessary for it to be noticed by a consumer. She cites studies which demonstrate that there is a region of price insensitivity around a brand’s expected price within which price changes do not significantly affect purchase probabilities. Price differences outside that region, in contrast,
The Effect of Benevolence Values and Implicit Theories of Values on Other-Focused behaviors Who are the people who engage in other-focused behaviors? The goal of the current research is to better understand one aspect of this broad question, concerning with the personal values of prosocial individuals. Previous research found that self-transcendence values (i.e. benevolence and universalism) can predict prosocial behavior (Bardi & Schwartz, 2003); however, the correlations were rather weak, especially for benevolence. The aim of the present study is to test the influence of a moderator of the relations between benevolence values and other-focused behaviors – the implicit self-theory of whether or not values can change.
The existing literatures referred in this chapter are focusing on result from the lab experiment. While attempting to be as inclusive as possible, the main focus of this chapter will be on dishonesty and (un)ethical behavior. Several concepts in economics and psychology that serve as explanations for behavioral con-tagion include social decisions and social distance (Akerlof, 1997), (Glaeser & Scheinkman, 2004); social status and conformity (Bernheim, 1994); imitation of behavior (Alós-Ferrer & Schlag, 2009); social learning (Bandura, 1971); norms (Cialdini et al., 1990); vicarious self-perception (Goldstein & Cialdini,2007). (Kandel & Lazear, 1992) even provided an argument that peer pressure may contain shame and guilt which in turn affect behavioral contagion. These concepts despite differences in verbal expressions, are not so strictly exclusive from each other, in both their conclusions and assumptions.
In the view of those trying to evaluate the effects of communication, its greatest impact will not be on "me" or "you," but on "them-the third persons.” Davison argues that the effects messages have on attitudes and behaviors are not due to the direct impact of the message themselves. Instead, he says, effects are due to the actions of those who anticipate a reaction on the part of others (the third persons) and behave differently as a result. (Perloff, 1999). Research into the Third Person Effect has gained a substantial amount of traction over the last few decades. Since the underlying foundations for the effect have been well established, most of the recent research studies have focused on the underlying processes, conditions, and consequences of the
2.3. Development of hypotheses 2.3.1. Attitudes to microcredit Hilson and Mc Quilken, (2014) argue that emotional and psychological feature attitudes on the product would like to investigate, as they predict purchase behavior of the product. The emotional part of attitudes shows positive feelings and emotions of mistreatment credit (Saleh, 2012). Also, people tend to cognitively appraise attributes of an object at a time from good for bad (Kay, and Urioste, 2007).
It becomes evident that the issues related to the growing awareness of and need for more sustainable development are driving all four basic forces mentioned above. Hence, professional valuers make an in depth study of all forces affecting property values, that they can formulate a reasonable and logical opinion on a value for a given property and situation. 188.8.131.52 Social Influences Social influences are changes in the size and demographic profile of the population can affect demand for goods and services as well as the availability and cost of the workforce used to produce properties. From table 4.5 show majority (54.84%) respondents proved that as population growth occur the property valuation becomes increases. In the city, the Social forces include population growth in relation to the social
This argument is further supported by Rock (1986) that a higher level of underpricing as compensation for lack of information obtained are given to uninformed investors. Therefore, the investors’ behavior and also the capital raising strategy of a firm is affected by the availability of information. Furthermore, as argued by Chan, Y. (1983) that investors’behavior determine the level of capital the issuing firm wishes to raise, which in turn, is influenced by the availability of