Abstract

http://ssrn.com/abstract=303386
 
 

Citations



 


 



Framing Effects on Selected Information and Market Behavior - an Experimental Analysis


Erich Kirchler


University of Vienna - Department of Psychology

Martin Weber


University of Mannheim - Department of Banking and Finance

Boris Maciejovsky


Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics

2005

The Journal of Behavioral Finance, Vol. 6, No. 2, pp. 90-100, 2005

Abstract:     
The results of an asset market experiment, in which 64 subjects trade two assets on eight markets in a computerized continuous double auction, indicate that (i) objectively irrelevant information influences trading behavior. Moreover, positively and negatively framed information leads to a particular trading pattern. However (ii), a probability variation of the framed information has no influence on trading volume. In addition, the results (iii) confirm the disposition effect. Participants who experience a gain sell their assets more rapidly than participants who experience a loss, and positively framed subjects generally sell their assets later than negatively framed subjects.

Keywords: Financial markets, Prospect theory, Anchoring and adjustment, Experimental economics, Disposition effect

JEL Classification: C90, D44, D80, G12

Accepted Paper Series





Not Available For Download

Date posted: March 18, 2002 ; Last revised: February 6, 2013

Suggested Citation

Kirchler, Erich and Weber, Martin and Maciejovsky, Boris, Framing Effects on Selected Information and Market Behavior - an Experimental Analysis (2005). The Journal of Behavioral Finance, Vol. 6, No. 2, pp. 90-100, 2005. Available at SSRN: http://ssrn.com/abstract=303386 or http://dx.doi.org/10.2139/ssrn.303386

Contact Information

Erich Kirchler (Contact Author)
University of Vienna - Department of Psychology ( email )
Universitaetsstrasse 7
Vienna, A-1010
Austria
+43 1 42 7747880 (Phone)
+43 1 42 7747889 (Fax)
Martin Weber
University of Mannheim - Department of Banking and Finance ( email )
D-68131 Mannheim
Germany
+49 621 181 1532 (Phone)
+49 621 181 1534 (Fax)
Boris Maciejovsky
Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )
Kahlaische Strasse 10
D-07745 Jena, 07745
Germany
+49 3641 686626 (Phone)
+49 3641 686623 (Fax)
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