The effects of community-based signals on investment decisions in copy trading

Sándor Erdős, Tamás Papp and Zsófia Vörös

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2022, vol. 97, issue C

Abstract: This study examines the importance and effects of community-based signals when choosing a trader to copy in a mock-up social trading platform. Although the studies examining the effects of social influence in choosing a trader to copy and herding point toward the importance of social influence, these works do not evaluate how related signals in different constellations with other signals affect the copying behavior. The results of a two-alternative forced-choice experiment in which subjects made 18 investment decisions systematically show the importance of community-based signals in the selection of traders judged worth copying, i.e., their potential to influence investment decisions and the general preference toward positive social profiles.

Keywords: Social trading; Copy trading; Community-based signals; Investing; Forced-choice experiment (search for similar items in EconPapers)
JEL-codes: G11 G41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214804322000234
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:97:y:2022:i:c:s2214804322000234

DOI: 10.1016/j.socec.2022.101847

Access Statistics for this article

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Pablo Brañas Garza

More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().