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I Did it Your Way. An Experimental Investigation of Peer Effects in Investment Choices

  • Alexia Delfino
  • Luigi Marengo
  • Matteo Ploner

    ()

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, with stronger social effects among those who discover to be less cautious than their peers. 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 hypotheses, imitation is weaker for uncertain investments than for risky investments.

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File URL: http://www-ceel.economia.unitn.it/papers/papero13_05.pdf
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Paper provided by Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia in its series CEEL Working Papers with number 1305.

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Date of creation: 2013
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Handle: RePEc:trn:utwpce:1305
Contact details of provider: Postal: Via Inama 5, 38100 Trento
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Web page: http://www-ceel.economia.unitn.it

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