Buying into Neurodiversity: Individuals with Lower Social Responsiveness are Less Susceptible to Buying into a Bubble Market

Posted: 25 Mar 2020 Last revised: 27 Mar 2020

See all articles by Annamarie Huttunen

Annamarie Huttunen

University of Pennsylvania - Marketing Department

Michael L. Platt

University of Pennsylvania - Marketing Department

Date Written: February 23, 2020

Abstract

Some individuals are more susceptible to overvaluing assets in bubble markets than others. However, the degree to which an individual’s social environment and social cognition affect bubble susceptibility is unclear. We examined the effects of social aptitude and social context on individual investors’ performance in experimental markets. Here we report that participants with lower social aptitude were less susceptible to bubbles in a social financial market. Participants with higher social responsiveness were more likely to buy a stock after seeing another participant buy a stock, and were also more likely to buy in a bubble market compared to a non-bubble market. Our findings suggest that bubbles are perpetuated by the herding behavior of highly social individuals, highlighting the importance of neurodiversity among asset traders.

Keywords: decision-making, social cognition, bubble markets, neurodiversity, behavior

JEL Classification: G02, G11, M31, G01

Suggested Citation

Huttunen, Annamarie and Platt, Michael L., Buying into Neurodiversity: Individuals with Lower Social Responsiveness are Less Susceptible to Buying into a Bubble Market (February 23, 2020). Available at SSRN: https://ssrn.com/abstract=3545218

Annamarie Huttunen (Contact Author)

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Michael L. Platt

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
196
PlumX Metrics