Bhattacharya, Utpal; Holden, Craig W.; Jacobsen, Stacey - In: Management Science 58 (2012) 2, pp. 413-431
This paper provides evidence that stock traders focus on round numbers as cognitive reference points for value. Using a random sample of more than 100 million stock transactions, we find excess buying (selling) by liquidity demanders at all price points one penny below (above) round numbers....