On the economic effects of the text completion interface: empirical analysis of financial markets

Eran Rubin () and Amir Rubin
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Eran Rubin: California State University Fresno
Amir Rubin: Simon Fraser University

Electronic Markets, 2021, vol. 31, issue 3, No 16, 717-735

Abstract: Abstract In financial markets, investment options are relatively fixed but may occasionally change as new securities (tickers) are introduced to the markets. Theory on exploratory behavior suggests that when new tickers are introduced, the text completion decision aid (autocomplete) can facilitate diversion of market participants from their initially intended ticker to the newly introduced ticker. We analyze whether such diversions have an economic impact in terms of transaction loss. Consistent with our hypothesis, we provide evidence that upon ticker introduction, turnover of securities that are syntactically similar to a newly introduced security is significantly reduced by 3%–5% around the starting day of trade of the new security. Autocomplete appears to have a significant economic effect on market transactions.

JEL-codes: G01 O31 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s12525-021-00485-0

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