Purpose–The purpose of this second of two companion papers is to further review the
insights provided by experimental studies examining financial decisions and market …

Understanding how prior outcomes affect risk attitudes is critical for the study of choice under
uncertainty. A large literature documents the significant influence of prior losses on risk …

The typical gambler loses money but continues to gamble nonetheless. Why? Research
from orthodox and behavioral economics, psychology, sociology, and medicine has offered …

Using high‐frequency data, this study investigates intraday price discovery and volatility
transmission between the Chinese stock index and the newly established stock index …

In this paper, we argue that when individual investors can obtain information from public
resources such as Google search, the degree of investor attention to a particular underlying …

This paper studies the default risk of banks generated by investment and remuneration
pressures. Competing banks prefer to pay their banking staff in bonuses and not in fixed …

Are market experts prone to heuristics, and do these heuristics transfer across buying and
selling domains? We investigate this question using a unique data set of institutional …

Financially unsophisticated investors who consistently make sub-optimal financial decisions
may suffer lasting consequences for long-term wealth accumulation and welfare. This study …

This paper shows that a New Year's gambling preference of individual investors impacts
prices and returns of assets with lottery features. January call options, especially the out-of …

We hypothesize that cognitive limitation may be manifested in a disproportionately large
volume of limit orders submitted at round-number prices if investors use these numbers as …