Debiasing through experience sampling: The case of myopic loss aversion
Published in Journal of Economic Behavior and Organization, 2022
Abstract: We introduce a training intervention based on a novel tool to mitigate behavior consis- tent with myopic loss aversion (MLA). We present the results of a large-scale online ex- periment with 894 student participants. The study featured a two-step debiasing training intervention based on experience sampling and a subsequent elicitation of MLA. We found that participants in the baseline treatment exhibit behavior consistent with MLA, which was not the case for decision makers who underwent the debiasing training interven- tion. Nonetheless, we found no statistically significant difference-in-difference effect of the training intervention on the magnitude of MLA. However, when we focused on the more attentive participants, the magnitude of the difference-in-difference effect of the training intervention increased strongly and became statistically significant when controlling for age, gender, education, field of study, investment experience, and risk preferences.
Recommended citation: Hueber, L., Schwaiger, R. (2022). Debiasing through experience sampling: The case of myopic loss aversion. Journal of Economic Behavior and Organization, 198, 97-138.
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