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Unformatted text preview: "greater tendency to continue an endeavor once an investment in money, time, or effort has been made." Size and timing also matter when looking at sunk costs. People will be more likely to take a lower lost that is distanced than a higher more immediate action that results in a sunk cost. Self control also causes people to react differently which will lead them to choose a higher interest rate for a quicker guarentee to pay off something sooner. Also, it is harder for people to save from their income which is seen as "consumption" account compared to their windfall "wealth" account. A tax swap is the selling of a loser to buy a similar stock. To shorten regret, people will tend to sell losers together while selling winners separately to maximize joy. A stock return momentum is when winners keep winning while losers keep losing because the winner is priced under fundamental value while losers are overpriced....
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- Fall '10