Experimenting with Financial Professionals

Christoph Huber (), Christian König-Kersting () and Matteo M. Marini

Working Papers from Faculty of Economics and Statistics, Universität Innsbruck

Abstract: As key players in financial markets and the broader industry, financial professionals are increasingly used as experimental research participants. We review over 50 studies comparing financial professionals to laypeople and conduct systematic meta-analyses of 24 eligible studies spanning from 1986 to 2023. Our findings reveal persistent and robust support for financial professionals being more risk- and uncertainty-loving, but little evidence of superior forecasting accuracy. Further analyses indicate that larger monetary payments result in greater behavioral differences between financial professionals and laypeople, suggesting an increased susceptibility to incentives among professionals. This systematic review not only synthesizes experimental results, contributing to recent discussions about external validity and generalizability, but also highlights critical methodological considerations when experimenting with financial professionals.

Keywords: experimental finance; experimental methodology; finance industry; generalizability; meta-analysis (search for similar items in EconPapers)
JEL-codes: B40 B41 C83 C90 C93 G41 (search for similar items in EconPapers)
Pages: 68
Date: 2022-07, Revised 2024-06
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2022-07

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