Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-15T14:36:48.326Z Has data issue: false hasContentIssue false
  • English
  • Français

Social Transmission Bias and Investor Behavior

Published online by Cambridge University Press:  28 January 2021

Bing Han Open the ORCID record for Bing Han [Opens in a new window] ,
David Hirshleifer  and
Johan Walden
Bing Han*
Affiliation:
University of Toronto Rotman School of Management
David Hirshleifer
Affiliation:
University of California at Irvine Merage School of Businessdavid.h@uci.edu
Johan Walden
Affiliation:
University of California at Berkeley, University of Lausanne, and Swiss Finance Institutewalden@haas.berkeley.edu
*
bing.han@Rotman.utoronto.ca (corresponding author)
Get access Rights & Permissions [Opens in a new window]

Abstract

We offer a new social approach to investment decision making and asset prices. Investors discuss their strategies and convert others to their strategies with a probability that increases in investment returns. The conversion rate is shown to be convex in realized returns. Unconditionally, active strategies (e.g., high variance and skewness) dominate, although investors have no inherent preference for these characteristics. The model has strong predictions for how the adoption of active strategies depends on investors’ social networks. In contrast with nonsocial approaches, sociability, self-enhancing transmission, and other features of the communication process determine the popularity and pricing of active investment strategies.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 57 , Issue 1 , February 2022 , pp. 390 - 412
Copyright
© The Author(s), 2021. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

Bing Han holds the TMX Chair in Capital Markets at the University of Toronto. David Hirshleifer holds the Merage Chair in Business Growth at University of California at Irvine. Johan Walden holds the Mitsubishi Bank Chair in International Business and Finance at University of California at Berkeley. We thank Nick Barberis, Markus Brunnermeier, Terry Burnham, Jean-Paul Carvalho, Jennifer Conrad (the editor), David Dicks, Andrea Eisfeldt, Diego Garcia (the referee), Jakub Jurek, Blake LeBaron, JuanJuan Meng, Edward Rice, Nikolai Roussanov, Martin Schmalz, Siew Hong Teoh, Paul Tetlock, Rossen Valkanov, Michela Verardo, Ivo Welch, Jeff Wurgler, Hongjun Yan, Liyan Yang, Wei Xiong, and seminar participants at Cambridge University, Central University of Finance and Economics, Chinese University of Hong Kong, Columbia University, Emory University, the Federal Reserve Board of New York, Nanyang Business School, National New York University, Oxford University, Princeton University, Shanghai Advanced Institute of Finance, Singapore Management University, Southwestern University of Finance and Economics, University of California, Los Angeles (UCLA), University of California San Diego (UCSD), University of Hong Kong, University of North Carolina, University of Singapore, University of Toronto, University of Washington at Seattle, Washington University in St. Louis, Xiamen University, Yale University, and the Institute for Mathematical Behavioral Sciences at University of California Irvine; participants at the 2013 Brigham Young University (BYU) Red Rock Finance Conference, 2013 Stanford Institute for Theoretical Economics (SITE) Conference at Stanford University, 2016 Hong Kong University of Science and Technology (HKUST) Finance Symposium, and 2019 China International Forum on Finance and Policy for very helpful comments; and Jason Chan, SuJung Choi, and Major Coleman for helpful research assistance. A previous version of this article was entitled “Self-Enhancing Transmission Bias and Active Investing.” All remaining errors are our own.

References

Ammann, M., and Schaub, N.. “Social Interaction and Investing: Evidence from an Online Social Trading Network.” Working Paper, University of St. Gallen (2016).Google Scholar
Ang, A.; Hodrick, R. J.; Xing, Y.; and Zhang, X.. “The Cross-Section of Volatility and Expected Returns.” Journal of Finance, 61 (2006), 259–299.CrossRefGoogle Scholar
Ang, A.; Hodrick, R. J.; Xing, Y.; and Zhang, X.. “High Idiosyncratic Volatility and Low Returns: International and Further U.S. Evidence.” Journal of Financial Economics, 91 (2009), 1–23.CrossRefGoogle Scholar
Baker, M.; Bradley, B.; and Wurgler, J.. “Benchmarks as Limits to Arbitrage: Understanding the Low-Volatility Anomaly.” Financial Analysts Journal, 67 (2011), 40–54.CrossRefGoogle Scholar
Bali, T. G.; Cakici, N.; and Whitelaw, R.. “Maxing Out: Stocks as Lotteries and the Cross-Section of Expected Returns.” Journal of Financial Economics, 99 (2011), 427–446.CrossRefGoogle Scholar
Bali, T. G.; Hirshleifer, D. A.; Peng, L.; and Tang, Y.. “Attention, Social Interaction, and Investor Attraction to Lottery Stocks.” Working Paper, Georgetown University (2019).CrossRefGoogle Scholar
Barber, B. M.; Heath, C.; and Odean, T.. “Good Reasons Sell: Reason-Based Choice Among Individual Investors in the Stock Market.” Management Science, 49 (2003), 1636–1652.CrossRefGoogle Scholar
Barber, B. M.; Lee, Y.-T.; Liu, Y.-J.; and Odean, T.. “Just How Much Do Individual Investors Lose by Trading?” Review of Financial Studies, 22 (2009), 609–632.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors.” Journal of Finance, 55 (2000a), 773–806.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “Too Many Cooks Spoil the Profits: The Performance of Investment Clubs.” Financial Analyst Journal, 56 (2000b), 17–25.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “Online Investors: Do the Slow Die First?” Review of Financial Studies, 15 (2002), 455–488.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors.” Review of Financial Studies, 21 (2008), 785–818.CrossRefGoogle Scholar
Barberis, N.; Greenwood, R.; Jin, L.; and Shleifer, A.. “X-CAPM: An Extrapolative Capital Asset Pricing Model.” Journal of Financial Economics, 115 (2015), 1–24.CrossRefGoogle Scholar
Barberis, N.; Greenwood, R.; Jin, L.; and Shleifer, A.. “Extrapolation and Bubbles.” Journal of Financial Economics, 129 (2018), 203–227.CrossRefGoogle Scholar
Barberis, N., and Huang, M.. “Stocks as Lotteries: The Implications of Probability Weighting for Security Prices.” American Economic Review, 95 (2008), 2066–2100.CrossRefGoogle Scholar
Barberis, N., and Shleifer, A.. “Style Investing.” Journal of Financial Economics, 68 (2003), 161–199.CrossRefGoogle Scholar
Bem, D. J. “Self-Perception Theory.” Advances in Experimental Social Psychology, 6 (1972), 1–62.CrossRefGoogle Scholar
Ben-David, I., and Hirshleifer, D.. “Are Investors Really Reluctant to Realize Their Losses? Trading Responses to Past Returns and the Disposition Effect.” Review of Financial Studies, 25 (2012), 2485–2532.CrossRefGoogle Scholar
Bénabou, R., and Tirole, J.. “Self-Confidence and Personal Motivation.” Quarterly Journal of Economics, 117 (2002), 871–915.CrossRefGoogle Scholar
Bisin, A., and Verdier, T.. “Beyond the Melting Pot: Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits.” Quarterly Journal of Economics, 115 (2000), 955–988.CrossRefGoogle Scholar
Bisin, A., and Verdier, T.. “The Economics of Cultural Transmission and the Dynamics of Preferences.” Journal of Economic Theory, 97 (2001), 298–319.CrossRefGoogle Scholar
Bordalo, P.; Gennaioli, N.; and Shleifer, A.. “Salience Theory of Choice under Risk.” Quarterly Journal of Economics, 127 (2012), 1243–1285.CrossRefGoogle Scholar
Bordalo, P.; Gennaioli, N.; and Shleifer, A.. “Salience and Asset Prices.” American Economic Review, 103 (2013), 623–628.CrossRefGoogle Scholar
Boyer, B.; Mitton, T.; and Vorkink, K.. “Expected Idiosyncratic Skewness.” Review of Financial Studies, 23 (2010), 169–202.CrossRefGoogle Scholar
Boyer, B., and Vorkink, K.. “Stock Options as Lotteries.” Journal of Finance, 59 (2014), 1485–1527.CrossRefGoogle Scholar
Brenner, L. A.; Koehler, D. J.; and Tversky, A.. “On the Evaluation of One-Sided Evidence.” Journal of Behavioral Decision Making, 9 (1996), 59–70.3.0.CO;2-V>CrossRefGoogle Scholar
Brown, J. R.; Ivković, Z.; Smith, P. A.; and Weisbenner, S.. “Neighbors Matter: Causal Community Effects and Stock Market Participation.” Journal of Finance, 63 (2008), 1509–1531.CrossRefGoogle Scholar
Brunnermeier, M. K., and Parker, J.. “Optimal Expectations.” American Economic Review, 95 (2005), 1092–1118.CrossRefGoogle Scholar
Burnside, C.; Eichenbaum, M.; and Rebelo, S. T.. “Understanding Booms and Busts in Housing Markets.” Journal of Political Economy, 124 (2016), 1088–1147.CrossRefGoogle Scholar
Calvet, L. E.; Campbell, J. Y.; and Sodini, P.. “Down or Out: Assessing the Welfare Costs of Household Investment Mistakes.” Journal of Political Economy, 115 (2007), 707–747.CrossRefGoogle Scholar
Calvet, L. E.; Campbell, J. Y.; and Sodini, P.. “Fight or Flight? Portfolio Rebalancing by Individual Investors.” Quarterly Journal of Economics, 124 (2009), 301–348.CrossRefGoogle Scholar
Campbell, J. Y.; Hilscher, J. D.; and Szilagyi, J.. “In Search of Distress Risk.” Journal of Finance, 63 (2008), 2899–2939.CrossRefGoogle Scholar
Carhart, M. M. “On Persistence in Mutual Fund Performance.” Journal of Finance, 52 (1997), 57–82.CrossRefGoogle Scholar
Case, K. E., and Shiller, R. J.. “The Behavior of Home Buyers in Boom and Post-Boom Markets.” New England Economic Review, 80 (1988), 29–46.Google Scholar
Chevalier, J., and Ellison, G.. “Risk Taking by Mutual Funds as a Response to Incentives.” Journal of Political Economy, 105 (1997), 1167–1200.CrossRefGoogle Scholar
Choi, J. J.; Laibson, D.; and Madrian, B. C.. “Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds.” Review of Financial Studies, 23 (2010), 1405–1432.CrossRefGoogle ScholarPubMed
Choi, J. J.; Laibson, D.; and Metrick, A.. “How Does the Internet Affect Trading? Evidence from Investor Behavior in 401(k) Plans.” Journal of Financial Economics, 64 (2002), 397–421.CrossRefGoogle Scholar
Choi, Y. “When Losers Talk: Conversations, Social Norms, and Information Diffusion.” Working Paper, University of California San Diego (2019).Google Scholar
Cipriani, M., and Guarino, A.. “Social Learning and Financial Crises.” In Risk Measurement and Systemic Risk: Proceedings of the Third Joint Central Bank Research Conference. Basel, Switzerland: The Committee on the Global Financial System, Bank for International Settlements Press (2002), 77–83.Google Scholar
Cipriani, M., and Guarino, A.. “Herd Behavior and Contagion in Financial Markets.” B.E. Journal of Theoretical Economics, 8 (2008), Article 24.CrossRefGoogle Scholar
Cohen, L.; Frazzini, A.; and Malloy, C. J.. “The Small World of Investing: Board Connections and Mutual Fund Returns.” Journal of Political Economy, 116 (2008), 951–979.CrossRefGoogle Scholar
Cohen, L.; Frazzini, A.; and Malloy, C. J.. “Sell-Side School Ties.” Journal of Finance, 65 (2010), 1409–1437.CrossRefGoogle Scholar
Conrad, J.; Dittmar, R. F.; and Ghysels, E.. “Ex Ante Skewness and Expected Stock Returns.” Journal of Finance, 68 (2013), 85–124.CrossRefGoogle Scholar
Crawford, S. S.; Gray, W. R.; and Kern, A. E.. “Why Do Fund Managers Identify and Share Profitable Ideas?” Journal of Financial and Quantitative Analysis, 52 (2017), 1903–1926.CrossRefGoogle Scholar
Daniel, K. D.; Grinblatt, M.; Titman, S.; and Wermers, R.. “Measuring Mutual Fund Performance with Characteristic-Based Benchmarks.” Journal of Finance, 52 (1997), 1035–1058.CrossRefGoogle Scholar
DeBondt, W. F. M. “Betting on Trends: Intuitive Forecasts of Financial Risk and Return.” International Journal of Forecasting, 9 (1993), 355–371.CrossRefGoogle Scholar
DeBondt, W. F. M., and Thaler, R. H.. “Financial Decision-Making in Markets and Firms: A Behavioral Perspective.” In Finance, Handbooks in Operations Research and Management Science, Vol. 9, Jarrow, R. A.; Maksimovic, V.; and Ziemba, W. T., eds. Amsterdam, NL: North Holland (1995), 385–410.Google Scholar
DeLong, J. B.; Shleifer, A.; Summers, L.; and Waldmann, R. J.. “Positive Feedback Investment Strategies and Destabilizing Rational Speculation.” Journal of Finance, 45 (1990), 375–395.Google Scholar
DeMarzo, P.; Vayanos, D.; and Zwiebel, J.. “Social Networks and Financial Markets.” Working Paper, MIT and Stanford University (2001).Google Scholar
DeMarzo, P.; Vayanos, D.; and Zwiebel, J.. “Persuasion Bias, Social Influence, and Uni-Dimensional Opinions.” Quarterly Journal of Economics, 118 (2003), 909–968.CrossRefGoogle Scholar
Duflo, E., and Saez, E.. “Participation and Investment Decisions in a Retirement Plan: The Influence of Colleagues’ Choices.” Journal of Public Economics, 85 (2002), 121–148.CrossRefGoogle Scholar
Duflo, E., and Saez, E.. “The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment.” Quarterly Journal of Economics, 118 (2003), 815–842.CrossRefGoogle Scholar
East, R.; Hammond, K.; and Wright, M.. “The Relative Incidence of Positive and Negative Word of Mouth: A Multi-Category Study.” International Journal of Research in Marketing, 24 (2007), 175–184.CrossRefGoogle Scholar
Eraker, B., and Ready, M. J.. “Do Investors Overpay for Stocks with Lottery-Like Payoffs? An Examination of the Returns on OTC Stocks.” Journal of Financial Economics, 115 (2015), 486–504.CrossRefGoogle Scholar
Escobar, L., and Pedraza, A.. “Active Trading and (Poor) Performance.” Working Paper, World Bank (2019).Google Scholar
Fiske, S. T. “Attention and Weight in Person Perception: The Impact of Negative and Extreme Behavior.” Journal of Personality and Social Psychology, 38 (1980), 889–906.CrossRefGoogle Scholar
Frazzini, A., and Pedersen, L. H.. “Betting Against Beta.” Journal of Financial Economics, 111 (2014), 1–25.CrossRefGoogle Scholar
French, K. R. “Presidential Address: The Cost of Active Investing.” Journal of Finance, 63 (2008), 1537–1573.CrossRefGoogle Scholar
Georgarakos, D., and Pasini, G.. “Trust, Sociability, and Stock Market Participation.” Review of Finance, 15 (2011), 693–725.CrossRefGoogle Scholar
Goetzmann, W. N., and Kumar, A.. “Equity Portfolio Diversification.” Review of Finance, 12 (2008), 433–463.CrossRefGoogle Scholar
Goffman, E. “Encounters.” Indianapolis, IN: Bobbs-Merrill (1961).Google Scholar
Green, T. C., and Hwang, B. H.. “Initial Public Offerings as Lotteries: Skewness Preference and First-Day Returns.” Management Science, 58 (2012), 432–444.CrossRefGoogle Scholar
Greenwood, R., and Shleifer, A.. “Expectations of Returns and Expected Returns.” Review of Financial Studies, 27 (2014), 714–746.CrossRefGoogle Scholar
Han, B., and Kumar, A.. “Speculative Retail Trading and Asset Prices.” Journal of Quantitative and Financial Analysis, 48 (2013), 377–404.CrossRefGoogle Scholar
Han, B., and Yang, L.. “Social Networks, Information Acquisition, and Asset Prices.” Management Science, 59 (2013), 1444–1457.CrossRefGoogle Scholar
Haruvy, E.; Lahav, Y.; and Noussair, C. N.. “Traders’ Expectations in Asset Markets: Experimental Evidence.” American Economic Review, 97 (2007), 1901–1920.CrossRefGoogle Scholar
Heimer, R. Z., and Simon, D.. “Facebook Finance: How Social Interaction Propagates Active Investing.” Working Paper, Federal Reserve Bank of Cleveland (2015).CrossRefGoogle Scholar
Heimer, R. Z. “Friends Do Let Friends Buy Stocks Actively.” Journal of Economic Behavior and Organization, 107 (2014), 527–540.CrossRefGoogle Scholar
Hirshleifer, D.; Li, J.; and Yu, J.. “Asset Pricing with Extrapolative Expectations and Production.” Journal of Monetary Economics, 76 (2015), 87–106.CrossRefGoogle Scholar
Hoffmann, A. O.; Post, T.; and Pennings, J. M.. “How Investor Perceptions Drive Actual Trading and Risk-Taking Behavior.” Journal of Behavioral Finance, 16 (2015), 94–103.CrossRefGoogle Scholar
Hong, H.; Kubik, J.; and Stein, J. C.. “Thy Neighbor’s Portfolio: Word-of-Mouth Effects in the Holdings and Trades of Money Managers.” Journal of Finance, 60 (2005), 2801–2824.CrossRefGoogle Scholar
Hong, H. G.; Kubik, J. D.; and Stein, J. C.. “Social Interaction and Stock Market Participation.” Journal of Finance, 59 (2004), 137–163.CrossRefGoogle Scholar
Hong, H. G. and Stein, J. C.. “A Unified Theory of Underreaction, Momentum Trading and Overreaction in Asset Markets.” Journal of Finance, 54 (1999), 2143–2184.CrossRefGoogle Scholar
Huang, J.; Wei, K. D.; and Yan, H.. “Participation Costs and the Sensitivity of Fund Flows to Past Performance.” Journal of Finance, 62 (2007), 1273–1311.CrossRefGoogle Scholar
Huang, S.; Hwang, B. H.; and Lou, D.. “The Speed of Communication.” Working Paper, University of Hong Kong (2018).Google Scholar
Ivković, Z., and Weisbenner, S.. “Information Diffusion Effects in Individual Investors’ Common Stock Purchases: Covet Thy Neighbors’ Investment Choices.” Review of Financial Studies, 20 (2007), 1327–1357.CrossRefGoogle Scholar
Jiang, G. J.; Xu, D.; and Yao, T.. “The Information Content of Idiosyncratic Volatility.” Journal of Financial and Quantitative Analysis, 44 (2009), 1–28.CrossRefGoogle Scholar
Kallick, M.; Smits, D.; Dielman, T.; and Hybels, J.. “A Survey of American Gambling Attitudes and Behavior.” Research Report Series, Survey Research Center, Institute for Social Research, University of Michigan (1979).Google Scholar
Karlsson, N.; Loewenstein, G. F.; and Seppi, D. J.. “The ‘Ostrich Effect’: Selective Attention to Information.” Journal of Risk and Uncertainty, 38 (2009), 95–115.CrossRefGoogle Scholar
Kaustia, M., and Knüpfer, S.. “Peer Performance and Stock Market Entry.” Journal of Financial Economics, 104 (2012), 321–338.CrossRefGoogle Scholar
Kelly, M., and O’Grada, C. O.. “Market Contagion: Evidence from the Panics of 1854 and 1857.” American Economic Review, 90 (2000), 1110–1124.CrossRefGoogle Scholar
Koehler, J. J., and Mercer, M.. “Selection Neglect in Mutual Fund Advertisements.” Management Science, 55 (2009), 1107–1121.CrossRefGoogle Scholar
Kumar, A. “Who Gambles in the Stock Market?” Journal of Finance, 64 (2009), 1889–1933.CrossRefGoogle Scholar
Lane, J. N.; Lim, S. S.; and Uzzi, B.. “Biased Information Transmission in Investor Social Networks: Evidence from Professional Traders.” Working Paper, Harvard University (2020).CrossRefGoogle Scholar
Langer, E. J., and Roth, J.. “Heads I Win, Tails It’s Chance: The Illusion of Control as a Function of the Sequence of Outcomes in a Purely Chance Task.” Journal of Personality and Social Psychology, 32 (1975), 951–955.CrossRefGoogle Scholar
Leary, M. R., and Kowalski, R. M.. “Impression Management: A Literature Review and Two-Component Model.” Psychological Bulletin, 107 (1990), 34–47.CrossRefGoogle Scholar
Lu, T., and Tang, N.. “Social Interactions in Asset Allocation Decisions: Evidence from 401(k) Pension Plan Investors.” Journal of Economic Behavior and Organization, 159 (2019), 1–14.CrossRefGoogle Scholar
Massa, M., and Simonov, A.. “Hedging, Familiarity and Portfolio Choice.” Review of Financial Studies, 19 (2006), 633–685.CrossRefGoogle Scholar
Mitton, T., and Vorkink, K.. “Equilibrium Underdiversification and the Preference for Skewness.” Review of Financial Studies, 20 (2007), 1255–1288.CrossRefGoogle Scholar
Mitton, T.; Vorkink, K.; and Wright, I.. “Neighborhood Effects on Speculative Behavior.” Journal of Economic Behavior and Organization, 151 (2018), 42–61.CrossRefGoogle Scholar
Morewedge, C. K.; Gilbert, D. T.; and Wilson, T. D.. “The Least Likely of Times: How Remembering the Past Biases Forecasts of the Future.” Psychological Science, 16 (2005), 626–630.CrossRefGoogle Scholar
Moskowitz, G. B. “Social Cognition: Understanding Self and Others.” New York, NY: Guilford Press (2004).Google Scholar
Nisbett, R., and Ross, L.. “Human Inference: Strategies and Shortcomings of Social Judgment.” Englewood Cliffs, NJ: Prentice-Hall (1980).Google Scholar
Özsöylev, H. N., and Walden, J.. “Asset Pricing in Large Information Networks.” Journal of Economic Theory, 146 (2011), 2252–2280.CrossRefGoogle Scholar
Schlenker, B. R. “Impression Management: The Self-Concept, Social Identity, and Interpersonal Relations.” Monterey, CA: Brooks/Cole Publishing Company (1980).Google Scholar
Shiller, R. J. “Market Volatility.” Cambridge: MIT Press (1989).Google Scholar
Shiller, R. J. “Speculative Prices and Popular Models.” Journal of Economic Perspectives, 4 (1990), 55–65.CrossRefGoogle Scholar
Shiller, R. J. “Irrational Exuberance.” Princeton, NJ: Princeton University Press (2000).Google Scholar
Shiller, R. J. “Narrative Economics.” American Economic Review, 107 (2017), 967–1004.CrossRefGoogle Scholar
Shiller, R. J., and Pound, J.. “Survey Evidence on the Diffusion of Interest and Information among Investors.” Journal of Economic Behavior and Organization, 12 (1989), 47–66.CrossRefGoogle Scholar
Shive, S. “An Epidemic Model of Investor Behavior.” Journal of Financial and Quantitative Analysis, 45 (2010), 169–198.CrossRefGoogle Scholar
Sicherman, N.; Loewenstein, G.; Seppi, D. J.; and Utkus, S. P.. “Financial Attention.” Review of Financial Studies, 29 (2016), 863–897.CrossRefGoogle Scholar
Sirri, E. R., and Tufano, P.. “Costly Search and Mutual Fund Flows.” Journal of Finance, 53 (1998), 1589–1622.CrossRefGoogle Scholar
Smith, V. L.; Suchanek, G. L.; and Williams, A. W.. “Bubbles, Crashes and Endogenous Expectations in Experimental Spot Asset Markets.” Econometrica, 56 (1988), 1119–1151.CrossRefGoogle Scholar
Tversky, A., and Kahneman, D.. “Judgment under Uncertainty: Heuristics and Biases.” Science, 185 (1974), 1124–1131.CrossRefGoogle ScholarPubMed
Vissing-Jorgensen, A. “Perspectives on Behavioral Finance: Does ‘Irrationality’ Disappear with Wealth? Evidence from Expectations and Actions.” NBER Macroeconomics Annual 2003, 18 (2003), 139–194.CrossRefGoogle Scholar
Welch, I. “Sequential Sales, Learning, and Cascades.” Journal of Finance, 47 (1992), 695–732.CrossRefGoogle Scholar
Wojnicki, A. C., and Godes, D.. “Signaling Success: Word of Mouth as Self-Enhancement.” Customer Needs and Solutions, 4 (2017), 68–82.CrossRefGoogle Scholar
Zhu, R. J.; Dholakia, U. M.; Chen, X. J.; and Algesheimer, R.. “Does Online Community Participation Foster Risky Financial Behavior?” Journal of Marketing Research, 49 (2012), 394–407.CrossRefGoogle Scholar
Supplementary material: PDF

Han et al. supplementary material

Han et al. supplementary material

Download Han et al. supplementary material(PDF)
PDF 255.3 KB