A5053704688- Financial Markets and Investment Strategies
- Decision-Making and Behavioral Economics
- Experimental Behavioral Economics Studies
- Market Dynamics and Volatility
- Complex Systems and Time Series Analysis
- Economic and Environmental Valuation
- Housing Market and Economics
- Corporate Finance and Governance
- Forecasting Techniques and Applications
- Economic theories and models
- Auditing, Earnings Management, Governance
- Psychology of Moral and Emotional Judgment
- Financial Literacy, Pension, Retirement Analysis
- Mental Health Research Topics
- Stochastic processes and financial applications
- Blockchain Technology Applications and Security
- Stock Market Forecasting Methods
- Environmental Sustainability in Business
- Data Analysis with R
- Consumer Behavior in Brand Consumption and Identification
- Ethics in Business and Education
- Private Equity and Venture Capital
- Color Science and Applications
- Complex Network Analysis Techniques
- Meta-analysis and systematic reviews
University of Zurich
2014-2024
Institute of Finance and Banking
2012-2024
Radboud University Nijmegen
2012-2024
Swiss Finance Institute
2022
Czech Academy of Sciences, Economics Institute
2021
Stony Brook University
2016
Norwegian School of Economics
2014
University of Münster
2007-2010
Abstract We assess how investors’ willingness-to-pay (WTP) for sustainable investments responds to the social impact of those investments, using a framed field experiment. While investors have substantial WTP they do not pay significantly more impact. This also holds dedicated investors. When compare several their relative, but absolute, levels Regardless investments’ impact, experience positive emotions when choosing investments. Our findings suggest that is primarily driven by an...
Risk is an integral part of many economic decisions and vitally important in finance. Despite extensive research on decision making under risk, little known about how risks are actually perceived by financial professionals, the key players global markets. In a large-scale survey experiment with 2,213 finance professionals 4,559 laypeople nine countries representing ~50% world’s population more than 60% gross domestic product, we expose participants to return distributions equal expected...
We apply a new and innovative approach to communicating risks associated with financial products that should support investors in making better investment decisions. In our experiments, participants are able gain "simulated experience" by random sampling of previously described return distribution. find simulated experience considerably improves participants' understanding the underlying risk–return profile prompts them reconsider their decisions choose riskier without regretting higher...
Arbitrage opportunities in markets for cryptocurrencies are well-documented. In this paper, we confirm that they exist; however, their magnitude decreased greatly from April 2018 onward. Analyzing various trading strategies, show it is barely possible to exploit existing price differences since then. We discuss and test several mechanisms may be responsible the increased market efficiency find informed correlated with a reduction arbitrage opportunities.
Does competition affect moral behavior? This fundamental question has been debated among leading scholars for centuries, and more recently, it tested in experimental studies yielding a body of rather inconclusive empirical evidence. A potential source ambivalent results on the same hypothesis is design heterogeneity-variation true effect sizes across various reasonable research protocols. To provide further evidence whether affects behavior to examine generalizability single study...
We explore how individual risk perception influences prices and trading behavior in a market setting. Specifically, our study lets experimental participants trade assets characterized by varying shapes of return distributions. While common mean-variance models predict identical for most assets, we find to differ significantly. Assets that are perceived as being less risky on average (despite having volatility) at significantly higher prices. Individually, traders who perceive certain asset...
Abstract In a series of experiments, we provide evidence that people pay special attention to the probability losing. We first analyze this behavior in typically used one-shot choice tasks. then extend our analysis repeated decisions tasks, as well allocation and investment Additionally, test both decision making under risk gradually removed uncertainty, with from experience. Our findings explicit loss probabilities contradict predictions normative descriptive theories, such Expected Utility...
We assess how investors' willingness-to-pay (WTP) for sustainable investments responds to the impact of those investments, using a framed field experiment. While investors have substantial WTP they do not pay more impact. This also holds dedicated investors. When compare several their differences in but absolute level Investors experience positive emotions when choosing irrespective investments' Our findings suggest that is driven by an emotional rather than calculative valuation
Most finance literature assumes risk to be defined as volatility. Academics, financial advisors and regulators use this definition alike build models policy around it. However, whether is how investors actually perceive risk, has hardly been tested. In a comprehensive series of studies, we elicit the perception investment propensity via exposing them variety return distributions. We identify an investment’s loss probability main influence factor. Volatility plays less important role. Our...
Risk is an integral part of many economic decisions, and vitally important in finance. Despite extensive research on decision-making under risk, little known about how risks are actually perceived by financial professionals, the key players global markets. In a large-scale survey experiment with 2,213 finance professionals 4,559 lay people nine countries representing ~50% world's population more than 60% gross domestic product, we expose participants to return distributions equal expected...
This study investigates the relationship between motive of greed and various asset market indicators, such as trading activity bubble formation (i.e., mispricing, overpricing, price amplitude). We ran experimental markets that allowed us to measure individuals' in order create populated with greedy individuals non-greedy individuals. Regarding activity, we found greedier had higher on individual level but not level. On level, high-greed exhibited less frequent smaller bubbles than traders....
Greed has been shown to be an important economic motive. Both the popular press as well scientific articles have mentioned questionable practices by greedy bankers and investors one of root causes 2008 global financial crisis. In spite these suggestions, there is yet no substantive empirical evidence for a contribution greed individual trading behavior. This article presents result 15 experimental asset markets in which we test influence on We do not find support idea that greedier trade...
COVID-19 has hit Latin America particularly hard. Prior structural problems—low productivity and a large informal sector—has generated deep economic crisis. Based on general description of the region's FinTech sector, we identify ways how FinTechs can help workers, entrepreneurs economies as whole to deal with aftermath Through collaboration FinTechs, LatAm's governments could incentivise digitalization, skill upgrading formalization, thus address some most profound problems. The paper...
Online investing is often facilitated by digital platforms, where the information of peer top performers can be widely accessible and distributed. However, influence such on retail investors' psychology, their trading behaviour potential risks they may prone to poorly understood. We investigate impact upward social comparison risk-taking, activity investor satisfaction using a tailored experiment with 807 experienced investors dynamically evolving simulated stock market, designed...