People with significantly different initial starting capitals may perceive gains and losses differently. In order to test this hypothesis, we consider and compare two samples of investors: retail investors as those with a maximum of €500,000 worth of assets under management (AUM) and private investors as those with more than €500,000 AUM. Based on the answers obtained from specifically devised questionnaires, we test the differences in gain and loss perception and check the level of satisfaction/dissatisfaction in situations of gain and loss. The results obtained demonstrate that private and retail investors perceive gains and losses differently.
Part of the book: Application of Decision Science in Business and Management