Myopic investment management

  • Eriksen K
  • Kvaløy O
  • 50


    Mendeley users who have this article in their library.
  • 20


    Citations of this article.


Myopic loss aversion (MLA) has been proposed as an explanation for the equity premium puzzle, and experiments indicate that investors exhibit behavior consistent with MLA. But a caveat is that a large bulk of financial assets is managed by investment managers whose objectives may differ substantially from those of private investors. Most importantly they manage their clients' money, not their own. In this paper we test experimentally how individuals take risk with other people's (“clients†) money. We find that subjects behave consistently with MLA over their clients' money and take less risk with their clients' money than with their own.

Author-supplied keywords

  • C91
  • D81
  • G11

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


  • Kristoffer W. Eriksen

  • Ola Kvaløy

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free