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Kick the cat? Retail investors displaced aggression: Evidence from amazon product ratings

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  • Wei, Siqi
  • Zhao, Yanhui

Abstract

We present novel findings that the e-commerce market reflects retail investors’ displaced aggression behavior. Market return fluctuations substantially impact the distribution of ratings left by Amazon customers, most of whom invest in equity market, directly or indirectly (defined as reviewer-investors). One standard-deviation decrease in market return leads to a 1.23% reduction in the daily average rating over the following day. Reviewer-investors respond to stock market losses and gains asymmetrically: investors only react to stock market losses. Our findings are consistent with investors’ recursive preferences focusing on the trade-off between current period utility and the certainty equivalent of random future utility.

Suggested Citation

  • Wei, Siqi & Zhao, Yanhui, 2025. "Kick the cat? Retail investors displaced aggression: Evidence from amazon product ratings," Journal of Behavioral and Experimental Finance, Elsevier, vol. 46(C).
    • Handle: RePEc:eee:beexfi:v:46:y:2025:i:c:s2214635025000395
    DOI: 10.1016/j.jbef.2025.101058
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    More about this item

    Keywords

    Retail investors; Online customer review; Behavioral finance;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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