GAMBLING WITH THE HOUSE MONEY IN CAPITAL EXPENDITURE DECISIONS - AN EXPERIMENTAL-ANALYSIS

Authors
KEASEY K MOON P
Citation
K. Keasey et P. Moon, GAMBLING WITH THE HOUSE MONEY IN CAPITAL EXPENDITURE DECISIONS - AN EXPERIMENTAL-ANALYSIS, Economics letters, 50(1), 1996, pp. 105-110
Citations number
5
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
50
Issue
1
Year of publication
1996
Pages
105 - 110
Database
ISI
SICI code
0165-1765(1996)50:1<105:GWTHMI>2.0.ZU;2-X
Abstract
This paper extends the work of Thaler and Johnson (Management Science, 1990, 36, no. 6, 643-660) on prior gains and losses in a business con text. In support of their results, the current experimental analysis o n capital expenditure decisions finds that prior gains shift behaviour towards risk seeking. The results do not, however, offer evidence of prior losses shifting behaviour towards risk aversion.