Mobile Devices and Investment Apps: The Effects of Information Release, Push Notification and the Fear of Missing Out
46 Pages Posted: 24 Jun 2017 Last revised: 25 Aug 2019
Date Written: August 22, 2019
We examine how information dissemination via mobile device applications (apps) affects nonprofessional investors’ judgments. In response to the prevalence of mobile device use, the media ungroups content into smaller pieces to accommodate users, and apps use push notifications to highlight this content. These changes increase users’ ability to access investment information in real time, leaving some investors feeling as if they are missing out if they are not continuously connected. We validate a scale to capture investors’ fear of missing out on investment information (I-FoMO) and document that I-FoMO is distinct from traditional FoMO that occurs in social settings. Then, using an experiment, we find that receiving ungrouped content via a mobile device has a greater effect on investment allocations in the presence, rather than absence, of push notifications. Further, we find that these results hold for higher, but not for lower, I-FoMO investors.
Keywords: investment apps; mobile communication; push notifications; fear of missing out; information release
JEL Classification: M40; M41; O33
Suggested Citation: Suggested Citation