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I did it your way. An experimental investigation of peer effects in investment choices

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  • Delfino, Alexia
  • Marengo, Luigi
  • Ploner, Matteo

Abstract

We experimentally investigate imitation in investment choices 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. 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 hypothesis, imitation is weaker for uncertain investments than for risky investments.

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  • Delfino, Alexia & Marengo, Luigi & Ploner, Matteo, 2016. "I did it your way. An experimental investigation of peer effects in investment choices," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 113-123.
    • Handle: RePEc:eee:joepsy:v:54:y:2016:i:c:p:113-123
    DOI: 10.1016/j.joep.2016.03.005
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Economics as science
      by chris dillow in Stumbling and Mumbling on 2013-10-25 17:59:27
    2. Socially influenced preferences
      by chris in Stumbling and Mumbling on 2016-11-02 17:53:20

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