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Models that use a reference point with no lag under the principle of preferred personal equilibrium or that determine the reference point using the principle of disappointment aversion cannot explain why the investor bought a stock in the first place. Reference point adjustment weakens the disposition effect, leads to more aggressive initial stock purchase strategies, and predicts history dependence in stock holding. <\/jats:p> This paper was accepted by John List, behavioral economics. <\/jats:p>","DOI":"10.1287\/mnsc.2016.2711","type":"journal-article","created":{"date-parts":[[2017,4,24]],"date-time":"2017-04-24T16:58:58Z","timestamp":1493053138000},"page":"3331-3351","source":"Crossref","is-referenced-by-count":84,"title":["Can Prospect Theory Explain the Disposition Effect? 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