Theoretical Exploration For Myopic Investment Under The Paradigm Of Single-play/Repeated-play

Myopic loss aversion was proposed as the explanation of the equity premiumpuzzle at first,and then was widely used to explan the different investment behaviorunder the paradigm of single-play/repeated-play.This kind of behavior that investorsinvest more money or accept more gamble in repeated-play condition than thesingle-play condition iwas explaned by myopic loss aversion;the contrary behaviorwas explaned by reverse myopic loss aversion,based on which Myopic ProspectTheory was proposed.Several questions exist as follows:firstly,does reverse myopic investment behaviorexist?Former researches showed myopic investment behavior was statisticallysignificant at p=0.1;secondly,whether myopic loss aversion,an explanation of theequity premium puzzle,could explan the myopic investment behavior under theparadigm of single-play/repeated-play;thirdly,could myopic prospect theory explanand predict myopic investment behavior and reverse myopic investment behaviorwell?Former finite research showed that Myopic Prospect Theory can explan reversemyopic investment behavior weakly,and explan myopic investment behavior at someextent,that experimental tasks were limited to individual risk profiles；finally,ifMyopic Prospect Theory could not do the job well,can we find a more suitable theoryto explan and predict myopic and reverse myopic investment behavior.This paper refered to former research paradigm,including study one in line withExpected Theory and Prospect Theory aiming at exploring the theoretical explanationof reverse myopic and myopic investment behavior,and study two in line withEquate-to-Differentiate Theory combing investment tasks with judgment tasks andaiming at whether individuals make investment decision based on several dimensionsand then equating and differentiating the differences between dimensions and withindimension.amout under the single-play condition and repeated-play condition,and thedifference value between the two condions.