The Impact of Salience on Investor Behavior

Cary Frydman discusses whether the display of information causally affects investor behavior in a high‐stakes trading environment. Using investor‐level brokerage data from China and a natural experiment, he estimates the impact of a shock that increased the salience of a stock’s purchase price but did not change the investor’s information set.

Image courtesy of interviewee. September 23, 2020

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