2024/06/24 by Li, Flora, Xiaoxue Zhao, Xiaolan Yang
#Business #Social and Behavioral Sciences #attentional allocation #overreaction #stock market
paper · doi:10.17605/osf.io/8pqfu
The phenomenon of overreaction in the stock market has long been of concern to many scholars; however, the mechanism of such a phenomenon is yet unclear. This project aims to study overreaction in the stock market using eyetracking device. In the experiment, the saliency features (trend of the price, orientation of the shock, time of the shock, size of the shock) of a stock price chart are manipulated within the subject treatment to test the behavioral mechanism of how the subject reacts to a sudden shock. Meanwhile, willingness to pay for each stock given to its price chart is elicited using a BDM mechanism. The project involves using the eye-tracking device to track eye movement, fixation, and pupil dilation during the decision-making process.