Showing 1 - 10 of 1,805
efficiency, while incidental emotions can impair it. Signals in specific brain areas can be a trigger precipitating a bubble …
Persistent link: https://www.econbiz.de/10011870688
efficiency, while incidental emotions can impair it. Signals in specific brain areas can be a trigger precipitating a bubble …
Persistent link: https://www.econbiz.de/10012917090
We develop and test a framework of mental information representation in an asset market setting. The model predicts heterogeneous trading behavior as a consequence of two distinct mental capabilities: analytical skills and mentalizing, where the former involves quantitative, objective aspects of...
Persistent link: https://www.econbiz.de/10012935621
We survey clients of a German online bank to study retail investors' beliefs about the autocorrelation of annual returns of the aggregate stock market, and the role of these beliefs in financial decisions. A majority of our respondents believe in mean reversion of aggregate returns, and these...
Persistent link: https://www.econbiz.de/10013236158
This paper studies whether and why algorithmic traders exhibit one of the most broadlydocumented behavioral puzzles - the disposition effect. We use trade data from the NASDAQ Copenhagen Stock Exchange merged with the weather data. We find that on average, the disposition effect for human...
Persistent link: https://www.econbiz.de/10013207355
We first provide evidence of some retail investors taking real trading (selling) decisions which are clearly sub-optimal even from an ex-ante perspective. We then show that these investors also exhibit stronger investment biases, namely, the disposition effect, underdiversification, preference...
Persistent link: https://www.econbiz.de/10012120317
Financial markets and economic conditions induce stress, but does stress, in turn, have a causal effect on investor behavior and markets? We analyze this question in bubble-prone experimental asset markets with 492 participants. We induce acute stress, which we measure with cortisol levels,...
Persistent link: https://www.econbiz.de/10014350551
Persistent link: https://www.econbiz.de/10013286588
This paper reports the results of 13 experimental asset markets with 195 subjects that explore the effects of insider behavior on the price formation process and market liquidity. The experimental call markets use a more realistic design than related studies. We introduce infinitely-lived assets...
Persistent link: https://www.econbiz.de/10010332635
In an experimental setting in which investors can entrust their money to traders, we investigate how compensation schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At the benefit of a potentially higher return, they can entrust their money...
Persistent link: https://www.econbiz.de/10010530580