Work

National differences in gambling-driven stock trading behavior: evidence from a simulated trading game

Year: 2024

Type: article

Abstract: There are significant differences in real-life gambling behavior between Germany and Italy. Contemporary theories suggest that these differences in individual preferences would translate to differences in trading behavior. We elicited trading behavior from participants of both Italian and German language groups using a stylized hold-or-trade scenario distributed via a survey. Additionally, we collected data on their self-stated gambling preferences. Our findings confirm the existence of large and significant differences in gambling consumption, problem gambling, and trading behavior between the two nationalities. Furthermore, we observed that gambling preferences explain most of the national differences. This suggests that established factors of financial decision-making play a more prominent role in explaining national differences in trading behavior than any latent cultural factors.

Source: Financial markets and portfolio management

DOI: 10.1007/s11408-024-00460-7

Authors: Moritz Mosenhauer, Jakob Windisch

Institution: Management Center Innsbruck

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,090

OpenAlex ID: W4403398798