Abstract
We provide an alternative experimental test for Myopic Loss Aversion. This test allows us to disentangle the effect of information dissemination from the effect of the time horizon on the investment behavior of a myopically loss averse investor. Our findings show that varying the information condition only suffices to induce behavior that is in line with the hypothesis of Myopic Loss Aversion. Furthermore, the results are reassuring of the potential of Myopic Loss Aversion to explain the Equity Premium Puzzle.
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