Investors' trading activity, a behavioural perspective: professionals vs. individuals

Kourtidis, Dimitrios; evi, eljko; Chatzoglou, Prodromos D.

doi:10.1504/ijbaf.2011.045021

Cited by 5 publications

(5 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Section: Discussionmentioning

confidence: 99%

“…The impact of trading experience and sophistication on behavioural biases has been studied using data from the laboratory as well as field data from financial market trades, as well as combined data [22,[88][89][90][91][92][93][94][95][96][97][98][99]. Empirical studies using real market data generally show that experience reduces behavioural biases, but biases remain relevant even for experienced traders [65,[93][94][95][96][97][98][99][100].. Specifically the disposition effect (tendency to sell wining positions too early and holding losing positions too long), linked to regret avoidance, is present in experienced traders as well [93][94][95][96][97][99][100][101].…”

Section: Discussionmentioning

confidence: 99%

“…Empirical studies using real market data generally show that experience reduces behavioural biases, but biases remain relevant even for experienced traders [65,[93][94][95][96][97][98][99][100].. Specifically the disposition effect (tendency to sell wining positions too early and holding losing positions too long), linked to regret avoidance, is present in experienced traders as well [93][94][95][96][97][99][100][101]. The evidence from the laboratory is largely based on a series of experiments from List et al who found that experience in trading simple objects reduces reluctance to trade [22,[88][89][90][91].…”

Section: Discussionmentioning

confidence: 99%

“…The study presented here aims to enrich the debate from a behavioural perspective. Since "behavioural economicrelated phenomena may affect price negotiations" for new pharmaceuticals as they affect professional deciders in other markets [65,[93][94][95][96][97][98][99][100]. The findings show that even if average regulators and sellers could agree based on their stated preferences, a majority of reimbursement negotiations can still fail due to valuation gaps in individual negotiation situations.…”

Section: Discussionmentioning

confidence: 99%

See 3 more Smart Citations

The impact of reimbursement negotiations on cost and availability of new pharmaceuticals: evidence from an online experiment

Wettstein

Boes

2020

Health Econ Rev

View full text Add to dashboard Cite

Background The necessity to measure and reward “value for money” of new pharmaceuticals has become central in health policy debates, as much as the requirement to assess the “willingness to pay” for an additional, quality-adjusted life year (QALY). There is a clear need to understand the capacity of “value-based” pricing policies to impact societal goals, like timely access to new treatments, sustainable health budgets, or incentivizing research to improve patient outcomes. Not only the pricing mechanics, but also the process of value assessment and price negotiation are subject to reform demands. This study assesses the impact of a negotiation situation for life-extending pharmaceuticals on societal outcomes. Of interest were general effects of the bargaining behaviour, as well as differences caused by the assigned role and the magnitude of prices. Methods We ran an online experiment (n = 404) on Amazon Mechanical Turk (MTurk). Participants were randomly assigned into four treatment groups for a reimbursement negotiation between two roles (health minister, pharma representative) in two price framings. Payoff to players consisted of a fixed salary and a potential bonus, depending on their preferences, their price offer and the counter offer of a randomly paired negotiation partner. Success had real social consequences on other MTurk users (premium payers, investors) and via donations to a patient association. Results Margins between reservation prices and price offers increased throughout the game. Yet, 47% of players reduced at least once and 15% always their bonus probability to zero in favour of an agreement. 61% of simulated negotiation pairs could have reached an agreement, based on their preferences. 63% of these were successful, leaving 61% of patients with no access to the new treatment. The group with “real world” prices had lower prices and less agreements than the unconverted payoff group. The successful markets redistributed 20% of total assets from premium payers to investors over five innovation cycles. Conclusions The negotiation situation for pharmaceutical reimbursement has notable impact on societal outcomes. Further research should evaluate policies that align preferences and increase negotiation success.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

See 2 more Smart Citations

The impact of reimbursement negotiations on cost and availability of new pharmaceuticals: evidence from an online experiment

Wettstein

Boes

2020

Health Econ Rev

View full text Add to dashboard Cite

show abstract

“…Other operational strategies include modeling portfolio performance where portfolio explains cross-sectional variation (Anderson, 2007), estimating stability and statistical control of automated trading platforms (Kumiega and Van Vliet 2012), evaluating behavioral perspective of an investor trading activity – biases, personality traits, overconfidence and risk tolerance (Kourtidis et al , 2011), assessment of trading activity of OTC investors compared to penny stock investors (Nofsinger and Varma, 2014), identifying firms with lower leverage (Muradoğlu and Sivaprasad, 2012). Lee et al (2013) reported the choice of retirement fund as a low-effort decision where most of the investors invest in conservative schemes only.…”

Section: Behavioral Finance Mediators Of Investor Decision Makingmentioning

confidence: 99%

Behavioral mediators of financial decision making – a state-of-art literature review

Nigam

Srivastava

Banwet

2018

RBF

View full text Add to dashboard Cite

Purpose The purpose of this paper is to review the insights provided by behavioral finance studies conducted in the last decade (2006-2015) examining behavioral variables in financial decision making. Design/methodology/approach The literature review assesses 623 qualitative and quantitative studies published in various international refereed journals and identifies possible scope of future work. Findings The paper identifies stock market anomalies which contradict rational agents of modern portfolio theory at an aggregate level and behavioral mediators, influencing the financial decision making at an investor level. The paper also attempts to classify different dimensions of risk as professed by the investor. Originality/value The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of financial market and investor behavior.

show abstract

How value-based policy interventions influence price negotiations for new medicines: An experimental approach and initial evidence

Wettstein

Boes

2022

Health Policy

View full text Add to dashboard Cite

Investors' trading activity, a behavioural perspective: professionals vs. individuals

Cited by 5 publications

References 0 publications

The impact of reimbursement negotiations on cost and availability of new pharmaceuticals: evidence from an online experiment

The impact of reimbursement negotiations on cost and availability of new pharmaceuticals: evidence from an online experiment

Behavioral mediators of financial decision making – a state-of-art literature review

How value-based policy interventions influence price negotiations for new medicines: An experimental approach and initial evidence

Contact Info

Product

Resources

About