Asymmetric Updating of Reference Prices
Investors who track stock price fluctuations report feeling negatively about breaking even if their stock reaches a high point and then stabilizes to the level of the original investment. On the other hand, investors whose stock reaches a low point and then returns to the original level do not report feeling comparably positively. Although in both cases investors end up with equivalent portfolios, we observe significant differences in how investors assess their performance due to the asymmetric updating of reference prices. Our results indicate this is due to feeling ownership over a stock’s paper gains but not its paper losses.
Susan Jung Grant and Ying Xie (2008) ,"Asymmetric Updating of Reference Prices", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 198-200.
Susan Jung Grant, University of Colorado, Boulder
Ying Xie, Washington University
NA - Advances in Consumer Research Volume 35 | 2008
I12. The Effect of Susceptibility-Induced Threat in the Preventative Communication
Moon-Yong Kim, Hankuk University of Foreign Studies
Personal Budgeting: Does It Work?
Christina Kan, Texas A&M University, USA
Philip M. Fernbach, University of Colorado, USA
John Lynch, University of Colorado, USA
C7. The Visually Simple = Healthy Intuition and Its Effects on Food Choices
Yan Wang, Renmin University of China
Jing Jiang, Renmin University of China