Continuing Failed Investment in order to Protect the Reputation
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Sometimes people seem to continue investing after they realize that the investment turns out to be a failure. Usually, the investor can minimize the loss by stopping the investment as soon as they realize that it would be unprofitable. This phenomenon is explained in this paper with the assumption that the investor concerns about his reputation and other future opportunities. In this model we can also see how the investor’s concern on his reputation may change his decision making on the current investment.
Abstract
Sometimes people seem to continue investing after they realize that the investment turns out to be a failure. Usually, the investor can minimize the loss by stopping the investment as soon as they realize that it would be unprofitable. This phenomenon is explained in this paper with the assumption that the investor concerns about his reputation and other future opportunities. In this model we can also see how the investor’s concern on his reputation may change his decision making on the current investment.
참고문헌 (6)
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