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Trading and Cognition in Asset Markets: An Eye-tracking Experiment

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  • Camille Cornand

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Maria Alejandra Erazo Diaz

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Adam Zylbersztejn

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

We use an experimental asset market with eye-tracker measurements for a novel exploration of the cognitive validity of a classic heterogeneous trader taxonomy. Following a top-down approach, we assume that the patterns of attention and information acquisition are governed by one of the three trading strategies, either feedback, passive, or speculative. In line with our first hypothesis, speculators seek information about market expectations. Notwithstanding the two other hypotheses, feedback traders reveal patterns of attention and information acquisition that could ex ante be expected from passive traders, and vice versa.

Suggested Citation

  • Camille Cornand & Maria Alejandra Erazo Diaz & Adam Zylbersztejn, 2023. "Trading and Cognition in Asset Markets: An Eye-tracking Experiment," Working Papers hal-04074298, HAL.
    • Handle: RePEc:hal:wpaper:hal-04074298
    Note: View the original document on HAL open archive server: https://hal.science/hal-04074298
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    More about this item

    Keywords

    Experiment; Asset market; Attention; Information acquisition; Eye-tracking;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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