The Long and Short of It: Why Are Stocks with Shorter Runs Preferred? Priya Raghubir Sanjiv R. Das
How do consumers process graphical financial information to estimate risk? Consumers sample the local maxima and minima of a graph to infer the variation around a trend line, which is used to estimate risk. The local maxima and minima are more extreme the higher the run length of the stocks (the consecutive number of upward or downward movements of a price series with identical mean, variance, skewness, and kurtosis). Three experiments show that this leads to stocks with higher run lengths being perceived as riskier: the run-length effect. The run-length effect is greater for investors who are more educated, are employed full time, trade more frequently, have had longer experience trading, and trade a wider range of financial instruments.
DOI: 10.1086/644762 Online Publication Date: September 18, 2009
References
Selected Media Mentions
The New York Times Perceiving the Risk of Stock Picking
Innovations Report Stock graphs can mislead: People prefer stocks with shorter runs
CanadianBusiness.com Investment risk: Examining the "run-length effect"
The Motley Fool Assessing Risk the Right Way
Science Daily Stock Graphs Can Mislead: People Prefer Stocks With Shorter Runs
PhysOrg.com Stock graphs can mislead: People prefer stocks with shorter runs
EurekAlert! Stock graphs can mislead: People prefer stocks with shorter runs
Thaindian News Stock graphs can mislead investors into making wrong decisions
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Will This Trip Really Be Exciting? The Role of Incidental Emotions in Product Evaluation Hakkyun Kim Kiwan Park Norbert Schwarz
How do
different emotions of the same valence
influence product evaluation when products make specific emotional
claims? Vacation products with adventurous (serene) appeals were
evaluated more favorably when participants felt excited (peaceful)
rather than peaceful (excited). This emotion-congruency effect was not
observed when participants were aware of the incidental nature of their
feelings and was mediated by the influence of feelings on
participant expectations that the product will deliver what it
promises. Consumers differentiate
between distinct positive emotions and use them as information in
assessing a product's emotional claims.
DOI: 10.1086/644763 Online Publication Date: September 10, 2009
References
Selected Media Mentions
Science Daily Will This Trip Be Exciting? Consumers Respond Best To Vacation Ads That Match Current Emotions
EurekAlert! Will this trip be exciting? Consumers respond best to vacation ads that match current emotions
RedOrbit Will This Trip Be Exciting? Consumers Respond Best To Vacation Ads That Match Current Emotions
PhysOrg.com Will this trip be exciting? Consumers respond best to vacation ads that match current emotions
Thaindian News Consumers respond best to vacation ads that match their current emotions
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When Do Incidental Mood Effects Last? Lay Beliefs versus Actual Effects Anastasiya Pocheptsova Nathan Novemsky
How does
incidental mood present at the
time of an experience affect judgments made long after the mood has
dissipated? How does this compare to lay beliefs about how mood affects
memory-based judgments? Memory-based judgments are
affected by incidental mood only when there is an external prompt to
evaluate the stimulus in real time. This is contrasted with lay beliefs
about the effects of mood, which are not sensitive to delay or to the
presence of real-time evaluations. The mismatch between lay beliefs and
actual effects leads consumers to distort previously unbiased
memory-based judgments when they are reminded of the source of the
incidental mood.
DOI: 10.1086/644760 Online Publication Date: September 10, 2009
References
Selected Media Mentions
Medical News Today New Study Shows That Mood Has Limited Effect On Memory
EurekAlert! Moody memories? New study shows that mood has limited effect on memory
Science Daily Moody Memories? Mood Has Limited Effect On Memory, Study Shows
PhysOrg.com Moody memories? New study shows that mood has limited effect on memory
RedOrbit New Study Shows Mood Has Limited Effect On Memory
Thaindian News How mood affects memory
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Choosing Your Future: Temporal Distance and the Balance between Self-Control and Indulgence Juliano Laran
How does
temporal distance influence consumer
self-control with healthy eating and saving money? Self-control is
dependent on the
content of currently active information in decisions for the future.
When indulgence information is currently active, decisions for the
future tend to be oriented toward self-control. When self-control
information is currently active, decisions for the future tend to be
oriented toward indulgence. In four experiments investigating healthy
eating and saving money, the authors find
evidence for an information activation/inhibition account of the
influence of temporal distance on self-control decisions.
DOI: 10.1086/644760 Online Publication Date: September 24, 2009
References
Selected Media Mentions
Medical News Today Candy Bar Or Healthy Snack? Free Choice Not As Free As We Think
Innovations Report Candy bar or healthy snack? Free choice not as free as we think
EurekAlert! Candy bar or healthy snack? Free choice not as free as we think
Science Daily Candy Bar Or Healthful Snack? Free Choice Not As Free As We Think
PhysOrg.com Candy bar or healthy snack? Free choice not as free as we think
RedOrbit Candy Bar Or Healthy Snack? Free Choice Not As Free As We Think
Thaindian News Decisions for self-control or indulgence depend on presentation of choices
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