We experimentally investigate imitation in investment decisions and focus on cognitive aspects of decision making. At this aim, we manipulate three main dimensions of choice: time pressure, normative content of social information, and uncertainty of the investment. We document the existence of imitation, with stronger social effects among those who discover to be less cautious than their peers. In line with our hypotheses, a piece of information which is more representative of average group behavior induces stronger imitation. Furthermore, higher time pressure fosters imitation. In contrast to our hypotheses, imitation is weaker for uncertain prospect than for risky prospects.

I did it your way: an experimental investigation of peer effects in investment choices / Delfino, Alexia; Marengo, Luigi; Ploner, Matteo. - In: JOURNAL OF ECONOMIC PSYCHOLOGY. - ISSN 0167-4870. - 54:(2016), pp. 113-123. [10.1016/j.joep.2016.03.005]

I did it your way: an experimental investigation of peer effects in investment choices

MARENGO, LUIGI;
2016

Abstract

We experimentally investigate imitation in investment decisions and focus on cognitive aspects of decision making. At this aim, we manipulate three main dimensions of choice: time pressure, normative content of social information, and uncertainty of the investment. We document the existence of imitation, with stronger social effects among those who discover to be less cautious than their peers. In line with our hypotheses, a piece of information which is more representative of average group behavior induces stronger imitation. Furthermore, higher time pressure fosters imitation. In contrast to our hypotheses, imitation is weaker for uncertain prospect than for risky prospects.
I did it your way: an experimental investigation of peer effects in investment choices / Delfino, Alexia; Marengo, Luigi; Ploner, Matteo. - In: JOURNAL OF ECONOMIC PSYCHOLOGY. - ISSN 0167-4870. - 54:(2016), pp. 113-123. [10.1016/j.joep.2016.03.005]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11385/171211
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