The nature of investing in share markets is undergoing significant changes due to the growth in electronic or online trading. Online trading has meant increased trading by new types of traders, often relatively inexpert. This paper reports a study that investigated whether more active trading by novice traders, meaning reduced decision making time, was associated with lower trading performance....

There is an abundant literature in finance on overconfidence, however there exists a different psychological trait well known to financial practitioners and psychologists [see Hilton at al. (2004)] which is optimism. This trait has received little attention. Our paper analyses the consequences of optimism and pessimism on financial markets. We develop a general model of optimism/pessimism where...

Systems: Northern Ghana Women’s Cognitive Understanding & Perceptions Researchers Dr. Seidu Alhassan Dennis Chirawurah Deborah Elzie Executive Summary The high expectations for mobile money’s potential to positively impact the livelihoods of both women and men trapped in poverty is not adequately backed by evidence on rural women traders' understanding, uses, and challenges. In this study we in...

Distributed computing systems are composed of various types of services. Providing a reliable and efficient distributed computing environment largely depends on the effective management of these services. One important aspect of managing services within a distributed computing environment is maintaining information about the services, especially at run-time. To facilitate this, much work has be...

Dark pools are equity trading systems that do not publicly display orders. Orders in dark pools are matched within the exchange bid-ask spread without a guarantee of execution. Informed traders are more likely to cluster on the heavy side of the market and therefore face a lower execution probability in the dark pool, relative to uninformed traders. Consequently, exchanges are more attractive t...

This paper studies pricing patterns in a speculative market with asymmetric information populated by both sophisticated and naive traders. Three pricing regimes arise in equilibrium: perfect pricing, with prices equalling asset values, partial mispricing and complete mispricing. Perfect pricing obtains when the presence of naive traders is small although not necessarily zero. When the fraction ...

Investor sentiment index based on actual trader positions is useful for forecasting S&P 500 index futures returns. We find that large speculator sentiment is a price continuation indicator, whereas large hedger sentiment is a weak contrary indicator. Small trader sentiment does not forecast returns. We show that extreme levels and the combination of extreme levels of sentiments of the two types...

This paper analyzes how asset prices in a binary market react to information when traders have heterogeneous prior beliefs. We show that the competitive equilibrium price underreacts to information when there is a bound to the amount of money traders are allowed to invest. Underreaction is more pronounced when prior beliefs are more heterogeneous. Even in the absence of exogenous bounds on the ...

This paper analyzes information acquisition in double auction markets and shows that for any finite information cost, if the number of traders and the units a trader is allowed to trade are sufficiently large, then an efficient equilibrium allocation fails to exist. For a large set of parameter values any equilibrium with positive volume of trade has the following properties. Ex ante identicall...

We report on results from experiments where human traders interact with software-agent traders in a real-time asynchronous continuous double auction (CDA) experimental economics system. Our experiments are inspired by the seminal work reported by IBM at IJCAI 2001 [Das et al., 2001], where it was demonstrated that softwareagent traders could consistently outperform human traders in real-time CD...