Abstract

http://ssrn.com/abstract=1530263
 
 

References (37)



 
 

Citations (2)



 


 



Exploring the Nature of 'Trader Intuition'


Antoine Jean Bruguier


California Institute of Technology

Steven R. Quartz


California Institute of Technology

Peter Bossaerts


California Institute of Technology; Swiss Finance Institute; Ecole Polytechnique Fédérale de Lausanne

January 1, 2010

Journal of Finance, Forthcoming
Swiss Finance Institute Research Paper No. 10-02

Abstract:     
Experimental evidence has consistently confirmed the ability of uninformed traders, even novices, to infer information from the trading process. We hypothesized that ToM was involved after contrasting brain activation in subjects watching markets with and without insiders. ToM refers to the innate human capacity to discern malicious or benevolent intent. We find that skill in predicting price changes in markets with insiders correlates with scores on two ToM tests. We document GARCH-like persistence in transaction price changes that may help with reading markets when there are insiders.

Number of Pages in PDF File: 102

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Date posted: January 2, 2010 ; Last revised: January 17, 2010

Suggested Citation

Bruguier, Antoine Jean and Quartz, Steven R. and Bossaerts, Peter, Exploring the Nature of 'Trader Intuition' (January 1, 2010). Journal of Finance, Forthcoming; Swiss Finance Institute Research Paper No. 10-02. Available at SSRN: http://ssrn.com/abstract=1530263

Contact Information

Antoine Jean Bruguier (Contact Author)
California Institute of Technology ( email )
Pasadena, CA 91125
United States
Steven R. Quartz
California Institute of Technology ( email )
Pasadena, CA 91125
United States
Peter L. Bossaerts
California Institute of Technology ( email )
m/c 228-77
Pasadena, CA 91125
United States
626-395-4028 (Phone)
626-405-9841 (Fax)
Swiss Finance Institute
c/o University of Geneve
40, Bd du Pont-d'Arve
1211 Geneva, CH-6900
Switzerland

Ecole Polytechnique Fédérale de Lausanne
Station 5
Odyssea 1.04
1015 Lausanne, CH-1015
Switzerland
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