The disposition effect-the tendency to sell winning transactions too soon and hold losing transactions too long-is examined experimentally in Macau. The findings show that the disposition effect exists strongly under the modified version of the experiment designed by Weber and Camerer [1998]. This study also points out that a psychological factor, the locus of control, can partly explain the disposition effect observed in this experiment.
No takes yet. Share an insight, caveat, or question.
Peter Man Wai Chui (2001) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: