Ph.D. Theses

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Comparison of investor behavior between real and simulated trading environments
(Thesis (Ph.D.) - Bogazici University. Institute for Graduate Studies in the Social Sciences, 2023., 2023) Şenol, Doğaç.; Onay, Ceylan.
Investment behavior between real and simulated trading environments are compared and whether gamification can help mitigate behavioral biases of investors is investigated by conducting a unique stock market experiment that is free from observer-expectancy and subject-expectancy effects. Utilizing the trading data of investors who simultaneously have active portfolios in an investment firm and stock market simulation game, it is shown that investors have different biases in real versus simulated settings. Participating in a stock market game is found to be affecting all biases differently, with different degrees of participation to the game. While overconfidence bias and disposition effect can be mitigated and decrease with more active participation in the game, familiarity and status quo biases increase. It is also shown that young, inexperienced investors with average-sized portfolios and men are more likely to participate. These findings will especially be of interest to researchers, financial institutions and policy makers that plan to conduct similar experiments and design services promoting better financial decision-making and investment behavior.