Capital Gains Overhang with a Dynamic Reference Point
(2020)
Journal Article
Riley, C., Summers, B., & Duxbury, D. (2020). Capital Gains Overhang with a Dynamic Reference Point. Management Science, 66(10), 4726-4745. https://doi.org/10.1287/mnsc.2019.3404
Financial models incorporating a reference point, such as the Capital Gains Overhang (CGO) model, typically assume it is fixed at the purchase price. Combining experimental and market data, this paper examines whether such models can be improved by i... Read More about Capital Gains Overhang with a Dynamic Reference Point.