Does Personality Drive Price Bubbles?

Posted: 11 Jul 2016

See all articles by Andreas Oehler

Andreas Oehler

Bamberg University

Florian Wedlich


Stefan Wendt

School of Business, Reykjavik University

Matthias Horn

Otto-Friedrich-Universität Bamberg

Multiple version iconThere are 2 versions of this paper

Date Written: July 9, 2016


We analyze whether differences in market-wide levels of investor personality influence experimental asset market outcomes in terms of price bubbles and levels. We employ a questionnaire to determine investor personality and combine the survey data with data from experimental asset markets. We run 17 separate asset markets with an overall number of 364 undergraduate business students. We find that markets with a higher proportion of extraverted and a lower proportion of neurotic participants exhibit longer bubble periods, higher prices, and higher limit orders at the beginning of the first trading session than markets with fewer extraverted and more neurotic participants. Overall, our findings suggest that market-wide personality levels influence market outcomes and yield implications for further research in financial markets.

Keywords: Investor Personality, Price Bubble, Experimental Asset Markets, Behavioral Finance

JEL Classification: G02, G11, C92

Suggested Citation

Oehler, Andreas and Wedlich, Florian and Wendt, Stefan and Horn, Matthias, Does Personality Drive Price Bubbles? (July 9, 2016). Available at SSRN:

Andreas Oehler (Contact Author)

Bamberg University ( email )

Kaerntenstrasse 7
Bamberg 96045
+49 951-863-2536 (Phone)
+49 951-863-2538 (Fax)


Florian Wedlich

Independent ( email )

Stefan Wendt

School of Business, Reykjavik University ( email )

Menntavegur 1
Reykjavik, 101

Matthias Horn

Otto-Friedrich-Universität Bamberg ( email )

Kaerntenstr. 7
Bamberg, 96045

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