糖心TV

In this project, we identify a heuristic that investors may use when making investment decisions in equity markets. Before retail investors make an investment decision, they are usually exposed to a depiction of an asset鈥檚 past performance. Most common, particularly for stocks, is a graphical representation of past returns via a price chart. These asset price charts are an omnipresent source of information. They provide pure information like returns, prices, and variance of the asset; but also highlight visual properties of the historical price path like peaks, troughs, streaks, highest/lowest price. Recent experimental evidence suggests that these visual properties influence investment behavior (Nolte and Schneider, 2018; Grosshans and Zeisberger, 2018). In this project, we combine concepts from behavioral economics, finance, and computer science to test how the salience of visual properties in depictions of an asset鈥檚 past performance (like price charts on a Bloomberg terminal) affects investment behavior.