Framing Effects on Selected Information and Market Behavior - an Experimental Analysis
Author | : Erich Kirchler |
Publisher | : |
Total Pages | : |
Release | : 2013 |
ISBN-10 | : OCLC:1290237919 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Framing Effects on Selected Information and Market Behavior - an Experimental Analysis written by Erich Kirchler and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The results of an asset market experiment, in which 64 subjects trade two assets on eight markets in a computerized continuous double auction, indicate that (i) objectively irrelevant information influences trading behavior. Moreover, positively and negatively framed information leads to a particular trading pattern. However (ii), a probability variation of the framed information has no influence on trading volume. In addition, the results (iii) confirm the disposition effect. Participants who experience a gain sell their assets more rapidly than participants who experience a loss, and positively framed subjects generally sell their assets later than negatively framed subjects.