Social trading networks provide access to an innovative type of delegated portfolio management. This paper provides a rationale for how these platforms are organized and gives some very first empirical insights to make social trading more tangible for both academics and practitioners alike....

We use a novel sample of exchange-traded security baskets managed by users of an online platform to provide new evidence on the risk-taking behavior of portfolio managers under option-like incentives. The unique feature of our setting is that it combines explicit-ly convex incentives with...