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dc.contributor.advisorBurnkrant, Robert
dc.creatorEaswar, Karthik
dc.date.accessioned2011-03-29T17:16:43Z
dc.date.available2011-03-29T17:16:43Z
dc.date.issued2011-03
dc.identifier.urihttp://hdl.handle.net/1811/48340
dc.descriptionBusiness: 1st Place (The Ohio State University Edward F. Hayes Graduate Research Forum)en_US
dc.description.abstractInvestor behavior has long been plagued by a conservatism that keeps individuals from maximizing their wealth. We examine how experience and explicit feedback can reduce two of the main impediments to successful investor decision making: loss aversion and myopia. Consistent with Kermer’s et al. (2006) claim that loss aversion is a symptom of poor affective forecasting, we are able to demonstrate that poor affective forecasting undermines investor decision-making by fueling loss aversion and inspiring myopic and suboptimal investment decisions. Importantly, we are also able to show that explicit feedback illustrating the gap between an individual’s affective forecast and actual affective response reduces affective forecasting errors. Once investors become better affective forecasters, they are less inclined to fear a temporary setback, which is observed through reduced loss aversion and investment decisions that focus on maximizing long-term earnings. In other words, improving affective forecasting can help consumers maximize both wealth and happiness.en_US
dc.language.isoen_USen_US
dc.relation.ispartofseries2011 Edward F. Hayes Graduate Research Forum. 25then_US
dc.subjectAffecten_US
dc.subjectGoalsen_US
dc.subjectProspect Theoryen_US
dc.titleMaximizing Wealth and Happiness: Improving Investor Decisions Through Improved Affective Forecastingen_US
dc.typeArticleen_US
dc.description.embargoA three-year embargo was granted for this item.en_US


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