National differences in gambling-driven stock trading behavior: evidence from a simulated trading game

Moritz Mosenhauer () and Jakob Windisch
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Moritz Mosenhauer: Universitätstrasse 15
Jakob Windisch: Universitätstrasse 15

Financial Markets and Portfolio Management, 2024, vol. 38, issue 4, No 4, 515-531

Abstract: Abstract There are significant differences in real-life gambling behavior between Germany and Italy. Contemporary theories suggest that these differences in individual preferences would translate to differences in trading behavior. We elicited trading behavior from participants of both Italian and German language groups using a stylized hold-or-trade scenario distributed via a survey. Additionally, we collected data on their self-stated gambling preferences. Our findings confirm the existence of large and significant differences in gambling consumption, problem gambling, and trading behavior between the two nationalities. Furthermore, we observed that gambling preferences explain most of the national differences. This suggests that established factors of financial decision-making play a more prominent role in explaining national differences in trading behavior than any latent cultural factors.

Keywords: Excessive trading; Problem gambling; Trading bias (search for similar items in EconPapers)
JEL-codes: G11 G41 G50 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11408-024-00460-7

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