Quispe-Torreblanca, E. orcid.org/0000-0002-0974-0705, Hume, D., Gathergood, J. et al. (2 more authors) (Accepted: 2024) At the Top of the Mind: Peak Prices and the Disposition Effect. Journal of Political Economy. ISSN 0022-3808 (In Press)
Abstract
The disposition effect is the reluctance to sell assets at a loss relative to a salient point of reference, typically assumed to be the purchase price. Using data on stocks and housing sales, we show that the peak price achieved by an asset during the investor’s period of holding constitutes an additional salient reference point for asset owners that overlaps, and interacts, with the purchase price reference point. Peaks occurring before the investor purchased the asset do not affect future sales, indicating that ownership affects how investors form reference points.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) The University of Leeds > Faculty of Business (Leeds) > Analytics, Technology & Ops Department |
Depositing User: | Symplectic Publications |
Date Deposited: | 22 Aug 2024 15:36 |
Last Modified: | 21 Feb 2025 16:32 |
Status: | In Press |
Publisher: | University of Chicago Press |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:216367 |
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Filename: Peak_Prices_and_the_Disposition_Effect_082024.pdf
