Hedonic Editing is a theory of behavioral finance based on prospect theory, attempting to predict whether individuals would segregate or integrate multiple outcomes to achieve to highest perceived value. We test the theory by an actual market data in Taiwan Futures Exchange. If the hypothesis holds, we should observe that investors would integrate losses more frequently than gains and integrate smaller losses with larger gains rather than the other way around. However, results do not support the hypotheses totally. We further test the theory by different trader types. Results show that domestic individuals exhibit the strongest biases of hedonic editing, followed by domestic corporations, and foreign institutions.

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