Work detail

Emotional Anchoring in Experimental Asset Markets

Author: Mgr. David Pospíšil
Year: 2017 - winter
Leaders: PhDr. Václav Korbel
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 57
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/185550/
Abstract: Human decision making process is influenced by many external as well as internal factors. Our
behaviour cannot be deemed as fully rational. This thesis investigates the effect of emotional
anchoring on a propensity to enter an asset bubble. This effect was observed in an experiment
ran on an online crowdsourcing platform, Amazon Mechanical Turk. The negative anchor proves
to have a significant negative effect, i.e. when a subject is under the negative anchor she is more
prone to enter the bubble. The positive anchor does not have any significant effect. This thesis
contributes to the general knowledge by confirming that trading decisions we make are
subjected to the emotions we feel prior to making the decisions.

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Deloitte
McKinsey & Company

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