Behavioral Finance and Investor Psychology
Packing products tightly on shelves makes shoppers grab more flavors
Four experiments find shoppers pick a wider mix of products when items sit close together on display. The pattern traces back to how spacing shapes visual attention.
The brain chemical behind your money moves: How dopamine shapes financial choices
A new review pulls together decades of research on how dopamine shapes financial decisions, from risk-taking to fairness to learning from feedback.
Can AI read the room? How news sentiment signals which stocks will bounce back after a crash
A new study of 2.7 million news articles finds that AI-generated sentiment scores can help distinguish temporary stock crashes from lasting declines, though the signal is getting faster.
When optimism mutes the message: How investor mood shapes crypto’s response to economic news
A study of 100 cryptocurrencies and 32 U.S. economic releases finds that bullish investor sentiment significantly weakens how sharply crypto prices and trading volumes react to macroeconomic news.
Why nominal interest rates bite harder than textbooks suggest
New research argues that fixed nominal mortgage payments and payment-to-income limits mean nominal interest rates directly affect what households can borrow, independent of real rates, with implications for housing markets and macro models.
The psychology of “manifesting”: Why believers feel more successful but often aren’t
A new scale measuring belief in "manifestation" finds that about a third of Americans endorse it. Believers feel more successful and optimistic, but show no higher income or education, and take more financial risks.
When a CEO’s foreign accent becomes an asset: What investors actually hear
An experiment using AI-generated CEO voices finds that investors were willing to invest more in companies led by foreign-accented CEOs — but only when those CEOs had a strong pre-existing reputation.
Congressional stock trades look a lot like retail investing, new study finds
A new analysis of a decade of congressional stock trades finds lawmakers don't beat the market, and their buy-sell decisions closely track publicly available analyst ratings and retail social media sentiment.
Researchers identify a costly pattern in consumer debt repayment
New research finds that borrowers with multiple installment loans tend to prepay the oldest one first, even when paying down a newer loan would save more interest.
Can GPT-4 pick stocks? A new AI framework reports market-beating returns on the S&P 100
Researchers built an AI framework around GPT-4 that reads news, earnings reports, and macro data to pick stocks. On the S&P 100, it beat the index by 10 to 30 percentage points over 15 months.