Zurich Trading Simulator (ZTS) — A dynamic trading experimental tool for oTree

Andraszewicz, Sandra; Friedman, Jason; Kaszás, Dániel; Hölscher, Christoph

doi:10.1016/j.jbef.2022.100762

Cited by 2 publications

(3 citation statements)

References 38 publications

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“…After accepting the invitation, a worker was re-directed to a link to Qualtrics, an online survey platform, which randomly assigned them to one of the two conditions: the control condition and the upward social comparison condition. Participants in both conditions underwent four steps: (1) a pre-screening questionnaire for investing on the stock market and financial literacy, (2) a self-reported risk attitude measure, (3) the Zurich Trading Simulator trading task (c.f., ZTS, 78 ) and (4) a short questionnaire about participants’ self-evaluation of their performance relative to others’ and a few demographic questions.…”

Section: Methodsmentioning

confidence: 99%

The influence of upward social comparison on retail trading behaviour

Andraszewicz,

Kaszás,

Zeisberger

et al. 2023

Sci Rep

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Online investing is often facilitated by digital platforms, where the information of peer top performers can be widely accessible and distributed. However, the influence of such information on retail investors’ psychology, their trading behaviour and potential risks they may be prone to is poorly understood. We investigate the impact of upward social comparison on risk-taking, trading activity and investor satisfaction using a tailored experiment with 807 experienced retail investors trading on a dynamically evolving simulated stock market, designed to systematically measure various facets of trading activity. We find that investors presented with an upward social comparison take more risk and trade more actively, and they report significantly lower satisfaction with their own performance. Our findings demonstrate the pitfalls of modern investment platforms with peer information and social trading. The broad implications of this study also provide guidelines for improving retail investor satisfaction and protection.

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Section: Methodsmentioning

confidence: 99%

The influence of upward social comparison on retail trading behaviour

Andraszewicz,

Kaszás,

Zeisberger

et al. 2023

Sci Rep

Self Cite

View full text Add to dashboard Cite

show abstract

“…Trading task. As the main part of the study, participants performed a stock trading task using the Zurich Trading Simulator (ZTS; [30]) and the endowment of 1000 000 Experimental Currency Units (ECU). ZTS is a dynamic gamified investment task in which participants can trade one stock using six quick-trade buttons (small, medium, and large sell/buy) and monitor their performance.…”

Section: Design and Materialsmentioning

confidence: 99%

“…To answer these questions, we studied trading behaviour in a simulated environment, the Zurich Trading Simulator (ZTS, [30], see Methods). ZTS is an experimental tool that provides a simulated trading experience in the form of a dynamically evolving market for individual investment decisions, and it allows tracing process measures to quantify risk-taking during trading.…”

Section: Introductionmentioning

confidence: 99%

Skin conductance predicts earnings in a market bubble-and-crash scenario

Wichary,

Allenbach,

von Helversen

et al. 2023

Preprint

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In financial markets, profit is usually associated with risk-taking, as those who take risks, use the opportunities that markets present. However, during market bubbles, risk-taking might lead to losses, whereas risk aversion can lead to more profit. Emotion-based warning signals might play a role here by helping to recognize when risk aversion is preferable. To study this, we used a trading simulator, where 27 male participants traded on a historical stock price trend during a market bubble-and-crash scenario, and we continuously monitored their skin conductance level. We found that participants earning the most were characterized by an adaptive pattern of risk-taking —they invested much in the asset in the initial phase of the bubble but sold their stocks before the crash. Their skin conductance level was closely associated with the price trend, peaking before the crash started. This suggests that skin conductance provided a bodily warning signal in this group. Moreover, in high earners, skin conductance level correlated negatively with the proportion of stocks, indicating that the high earners used this warning signal to sell stocks. These results underscore the adaptive role of bodily signals in decision-making and elucidate the neural basis of success in uncertain financial markets.

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Zurich Trading Simulator (ZTS) — A dynamic trading experimental tool for oTree

Cited by 2 publications

References 38 publications

The influence of upward social comparison on retail trading behaviour

The influence of upward social comparison on retail trading behaviour

Skin conductance predicts earnings in a market bubble-and-crash scenario

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