DeBondt and Thaler found that the winner/loser effect is attributable to investor overconfidence and biased self-attribution.

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DeBondt and Thaler's research showed that the winner/loser effect is caused by investors' overconfidence and biased self-attribution. When investors experience a winning streak, they often believe they have superior skills or knowledge, leading to overconfidence and riskier investments. On the other hand, after a losing streak, investors may attribute their losses to external factors rather than their own decisions, leading to more conservative investments.

DeBondt and Thaler Found That the Winner/loser Effect Is Attributable