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Trading Gamification and Investor Behavior

Author

Listed:
  • Philipp Chapkovski

    (Faculty of Social Sciences, University of Duisburg-Essen, Duisburg 47057, Germany)

  • Mariana Khapko

    (Department of Management, University of Toronto Scarborough, Scarborough, Ontario M1C 1A4, Canada; and Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

  • Marius Zoican

    (Haskayne School of Business, University of Calgary, Calgary, Alberta T2N 1N4, Canada)

Abstract

We study the effect of gamification on retail traders’ behavior using a randomized online experiment. Participants with lower financial literacy prefer platforms with hedonic gamification elements, such as confetti and achievement badges. On average, hedonic gamification increases trading volume by 5.17%. However, the difference in trading activity between gamified and nongamified platforms is driven primarily by self-selection (70%) rather than gamification (30%). Participants who prefer hedonic gamification exhibit noisy trading strategies, whereas those favoring nongamified platforms display stronger contrarian behavior. Further, price trend notifications enhance learning for investors with accurate beliefs, but they reinforce trading mistakes for those with incorrect beliefs.

Suggested Citation

  • Philipp Chapkovski & Mariana Khapko & Marius Zoican, 2026. "Trading Gamification and Investor Behavior," Management Science, INFORMS, vol. 72(1), pages 32-56, January.
    • Handle: RePEc:inm:ormnsc:v:72:y:2026:i:1:p:32-56
    DOI: 10.1287/mnsc.2022.02650
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    References listed on IDEAS

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    Cited by:

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