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Last Published July 17, 2019 03:36 AM February 01, 2020 08:31 PM
Public Data URL https://doi.org/10.17605/OSF.IO/348YZ
Is there a restricted access data set available on request? Yes No
Is data available for public use? No Yes
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Paper Abstract This paper studies the influence of framing on the relationship between trading in a transparenttrading environment (a "scopic regime") and the disposition effect. In principle, the recent literature agreesthat social interactions alter investors’ disposition effect. However, while some studies argue the dispositioneffect increases in a social environment, others provide evidence that the disposition effect decreases undera scopic regime. We show that the framing of the decision problem on social trading platforms affects thesign on this relationship, and thereby synthesize the existing findings. Individuals alter their behavior tooptimize their social image under the given framing. This paper studies the influence of framing on the relationship between trading in a transparent trading environment (a “scopic regime”) and the disposition effect. In principle, the recent literature agrees that social interactions alter investors’ disposition effect. However, while some studies argue the disposition effect increases in a social environment, others provide evidence that the disposition effect decreases under a scopic regime. We show that the framing of the decision problem on social trading platforms affects the sign on this relationship, and thereby synthesize the existing findings. Individuals alter their behavior to optimize their social image under the given framing.
Paper Citation Liêu Minh Lý & Matthias Pelster (2020) Framing and the disposition effect in a scopic regime, The Quarterly Review of Economics and Finance.
Paper URL https://wiwi.uni-paderborn.de/fileadmin/cetar/TAF_Working_Paper_Series/TAF_WP_043_MinhLyPelster_2019.pdf https://doi.org/10.1016/j.qref.2020.01.008
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