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Copy trading

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Abstract: Copy trading allows traders in social networks to receive information on the success of other agents in financial markets and to directly copy their trades. Internet platforms like eToro, ZuluTrade, and Tradeo have attracted millions of users in recent years. The present paper studies the...

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Bibliographische Detailangaben
Hauptverfasser: Apesteguia, Jose (VerfasserIn) , Oechssler, Joerg (VerfasserIn) , Weidenholzer, Simon (VerfasserIn)
Dokumenttyp: Book/Monograph Arbeitspapier
Sprache:Englisch
Veröffentlicht: Heidelberg University of Heidelberg, Department of Economics June 27, 2018
Schriftenreihe:Discussion paper series / University of Heidelberg, Department of Economics no. 649
In: Discussion paper series (no. 649)

DOI:10.11588/heidok.00024778
Schlagworte:
Graue Literatur
Online-Zugang:Resolving-System, kostenfrei, Volltext: http://dx.doi.org/10.11588/heidok.00024778
Resolving-System, kostenfrei, Volltext: http://nbn-resolving.de/urn:nbn:de:bsz:16-heidok-247788
Verlag, kostenfrei, Volltext: http://archiv.ub.uni-heidelberg.de/volltextserver/24778/1/Apesteguia%2C%20Oechssler%2C%20and%20Weidenholzer%2C%202018%2C%20dp%20649.pdf
Resolving-System, kostenfrei: http://hdl.handle.net/10419/207625
Resolving-System, kostenfrei, Volltext: https://nbn-resolving.org/urn:nbn:de:bsz:16-heidok-247788
Volltext
Verfasserangaben:Jose Apesteguia, Jörg Oechssler, and Simon Weidenholzer
Beschreibung
Zusammenfassung:Abstract: Copy trading allows traders in social networks to receive information on the success of other agents in financial markets and to directly copy their trades. Internet platforms like eToro, ZuluTrade, and Tradeo have attracted millions of users in recent years. The present paper studies the implications of copy trading for the risk taking of investors. Implementing an experimental financial asset market, we show that providing information on the success of others leads to a significant increase in risk taking of subjects. This increase in risk taking is even larger when subjects are provided with the option to directly copy others. We conclude that copy trading reduces ex-ante welfare, and leads to excessive risk taking.
Beschreibung:Key words: Copy trading, Financial markets, Social networks, Imitation, Experiment; JEL codes: C91, D81, G12, G20, G41
Beschreibung:Online Resource
DOI:10.11588/heidok.00024778

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