Apesteguia, Jose; Oechssler, Joerg; Weidenholzer, Simon - 2018
Abstract: Copy trading allows traders in social networks to receive information on the success of other agents in … millions of users in recent years. The present paper studies the implications of copy trading for the risk taking of investors … option to directly copy others. We conclude that copy trading reduces ex-ante welfare, and leads to excessive risk taking. …