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Decision making can be a complex process requiring the integration of several attributes of choice options. Understanding the neural processes underlying (uncertain) investment decisions is an important topic in neuroeconomics. We analyzed functional magnetic resonance imaging (fMRI) data from...
Persistent link: https://www.econbiz.de/10010379977
Empirical research documents that temporary trends in stock pricemovements exist. Moreover, riding a trend can be a profitable investment strategy. (...)
Persistent link: https://www.econbiz.de/10005844860
The Marginal Trader Hypothesis (Forsythe, Robert, Forrest Nelson, George R. Neumann and Jack Wright. (1992). Anatomy of an Experimental Political Stock Market, American Economic Review 82(5): 1142-61) posits that a small group of well-informed traders keep an asset's market price equal to its...
Persistent link: https://www.econbiz.de/10013131611
We create an experimental asset market in which we conduct share repurchases and share issues. Although the intrinsic value of the shares is independent of the quantity outstanding, the interventions result in changes in asset price. Specifically, we find the following. (1) A repurchase of...
Persistent link: https://www.econbiz.de/10013097704
We investigate whether the quantitative frame used to communicate future pension income to plan members matters for perceived pension income adequacy. We allocate plan members randomly to one of four pension income framing conditions: annual pension income, monthly pension income, pension income...
Persistent link: https://www.econbiz.de/10012941524
We study a natural experiment in which 1.5 million investors participate in allocation lotteries for Indian IPO stocks. Investors who win the lottery and obtain IPO stocks that rise in value increase portfolio trading volume in non-IPO stocks relative to lottery losers; the effects are negative...
Persistent link: https://www.econbiz.de/10012856323
An “information cascade” occurs when initial decisions coincide in a way that it is optimal for each of the subsequent individuals to ignore her or his private signals and follow the established pattern. Moscarini et. al (1996) developed a social learning model hitherto unexplored in an...
Persistent link: https://www.econbiz.de/10013053636
We investigate whether the quantitative frame used to communicate future pension income to plan members matters for perceived pension income adequacy. We allocate plan members randomly to one of four pension income framing conditions: annual pension income, monthly pension income, pension income...
Persistent link: https://www.econbiz.de/10012931805
Persistent link: https://www.econbiz.de/10013144267
Experiments are an underused method in finance and have natural advantages for behavioral finance. Experiments can … self-selection. Experiments can extend the theoretical models they test by relaxing various assumptions or examining …, experiments are most informative when they rely on controlled manipulation, which is the source of their inferential power …
Persistent link: https://www.econbiz.de/10013144280