Disposition Effect and Diminishing Sensitivity: An Analysis Based on a Simulated Experimental Stock Market

The authors experimentally investigate the existence of the disposition effect and its relationship with diminishing sensitivity. Their approach includes 3 key characteristics: (i) an environment closely resembling actual stock markets, (ii) individual-specific reference prices, and (iii) a direct test of diminishing sensitivity as a correlate of the disposition effect. They find strong support for the existence of the disposition effect as an independent hypothesis. This is an improvement over previous studies, which tested this hypothesis only jointly with others. The authors' results also strongly point to diminishing sensitivity, of the type postulated by prospect theory, being positively associated with the disposition effect.     

Fostering cooperation between farmers and public and private actors to expand environmentally friendly rice cultivation: intermediary functions and farmers’ perspectives

This study investigates the intermediary functions and the farmers’ perspectives in the development and implementation of agri-environmental schemes in Shiga Prefecture of Japan by employing the innovation journey analysis and the statistical analysis. The innovation journey analysis demonstrates that the prefectural government served as an ‘innovation intermediary’ to: (1) provide a clear vision of sustainable agriculture for farmers and other actors, (2) create and reinforce both technological and market niches and (3) develop actor networks involving local actors. It also identifies the following roles of the Japan Agricultural Cooperatives (JAs) and the specialist wholesaler as innovation intermediaries to: (1) develop new farming materials such as fertilizers, (2) translate and deliver practical farming knowledge for farmers and (3) establish the market of environmental-friendly rice. Statistical analysis uncovers that farmers more appreciated the supports from the JAs than those from other intermediaries to participate in the schemes. Complemented by the innovation journey analysis, our findings suggest that the keys to increasing farmers’ participation in the schemes include a clear vision and economic incentives for farmers as well as the coordination among intermediaries who have different expertise.