Experience Effects in Finance. Foundations, Applications, and Future Directions.

Autor/in	Malmendier, Ulrike
Institution	National Bureau of Economic Research
Titel	Experience Effects in Finance. Foundations, Applications, and Future Directions.
Quelle	Cambridge, Mass.: National Bureau of Economic Research (2021), 43 S. PDF als Volltext Link als defekt meldenVerfügbarkeit
Reihe	NBER working paper series. w29074
Beigaben	Illustrationen
Sprache	englisch
Dokumenttyp	online; Monographie; Graue Literatur
Schlagwörter	Verhalten; Lernen; Lernprozess; Geldanlage; Management; Arbeitspapier; Portfolio
Abstract	This article establishes four key findings of the growing literature on experience effects in finance: (1) the long-lasting imprint of past experiences on beliefs and risk taking, (2) recency effects, (3) the domain-specificity of experience effects, and (4) imperviousness to information that is not experience-based. I first discuss the neuroscientific foundations of experience-based learning and sketch a simple model of its role in the stock market based on Malmendier et al. (2020a, b). I then distill the empirical findings on experience effects in stock-market investment, trade dynamics, and international capital flows, highlighting these four key features. Finally, I contrast models of belief formation that rely on "learned information" with models accounting for the neuroscience evidence on synaptic tagging and memory formation, and provide directions for future research.
Erfasst von	ZBW - Leibniz-Informationszentrum Wirtschaft, Kiel
Update	2022/1