Jianying Qiu

I. Introduction A large body of literature documents that investors are inclined to sell assets that have gained in value too early and keep assets that have lost in value for too long. This inclination, known as the disposition effect (DP hereafter, Shefrin and Statman (Reference Shefrin and Statman1985)), plays a prominent role in behavioral finance and behavioral economics literature.

Item Type: MPRA Paper Original Title: Measuring subjective decision confidence Language: English Keywords: decision confidence, randomization, incentivized approach, preference uncertainty Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior D - Microeconomics > D8 - Information, Knowledge, and...

Arts, Sara and Ong, Qiyan and Qiu, Jianying (2020): Measuring subjective decision confidence. Abstract We examine whether the way individuals randomize between options captures their decision confidence. In two experiments in which subjects face pairs of options (a lottery and a varying sure payment), we allow subjects to choose randomization probabilities according to which they would receive each option.