Cognitive Dissonance: Hard to Fire Yourself; Easy to Fire Your Manager

Cognitive Dissonance: Hard to Fire Yourself; Easy to Fire Your Manager by Wesley R. Gray, Ph.D., Alpha Architect,  Author, Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors Looking for Someone to Blame: Delegation, Cognitive Dissonance, and the Disposition Effect Chang, Solomon, Westerfield A version of the paper can be found here. Want a summary of academic papers with alpha? Check out our Academic Research Recap Category. Abstract: We analyze brokerage data and an experiment to test a cognitive-dissonance based theory of trading: investors avoid realizing losses because they dislike admitting that past purchases were mistakes, but delegation reverses…