Article ID Journal Published Year Pages File Type
884643 Journal of Economic Behavior & Organization 2008 10 Pages PDF
Abstract

Empirical research has demonstrated that a lower feedback frequency combined with a longer period of commitment decreases myopia and thereby increases the willingness to invest in a risky asset. In an experimental study, we disentangle the intertwined manipulation of feedback frequency and commitment to analyze how each individual variable contributes to the change in myopia and how they interact. We find that the period of commitment exerts a substantial impact and the feedback frequency a far less pronounced impact. There is a strong interaction between both variables. The results have significant implications for real world intertemporal decision making.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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