http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1892338&

Testing Theories of Investor Behavior Using Neural Data

Cary Frydman
California Institute of Technology - Division of the Humanities and Social Sciences

Nicholas Barberis
Yale School of Management; National Bureau of Economic Research (NBER)

Colin Camerer
California Institute of Technology - Division of the Humanities and Social Sciences

Peter Bossaerts
California Institute of Technology; Swiss Finance Institute; Ecole Polytechnique Fédérale de Lausanne

Antonio Rangel
Stanford Graduate School of Business


July 21, 2011



Abstract:      
We show that measures of neural activity provided by functional magnetic resonance imaging (fMRI) can be used to test between theories of investor behavior that are difficult to distinguish using behavioral data alone. Subjects traded stocks in an experimental market while we measured their brain activity. Behaviorally, we find that our average subject exhibits a strong disposition effect in his trading, even though it is suboptimal. We then use the neural data to test a specific theory of the disposition effect, the “realization utility” hypothesis, which argues that the effect arises because people derive utility directly from the act of realizing gains and losses. Consistent with this hypothesis, we find that activity in an area of the brain known to encode the value of decisions correlates with the capital gains of potential trades, that the size of these neural signals correlates across subjects with the strength of the behavioral disposition effects, and that activity in an area of the brain known to encode experienced utility exhibits a sharp upward spike in activity at precisely the moment at which a subject issues a command to sell a stock at a gain.

Number of Pages in PDF File: 52

Keywords: neuroeconomics, trading, disposition effect, realization utility

JEL Classifications: G11

Working Paper Series
Date posted: July 23, 2011   



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文章作者之一 Cary Frydman 是加州工学院明年即将毕业的一名博士生，他的博士论文题目就是 Essays in Neurofinance.

http://www.hss.caltech.edu/~cfrydman/Academic/Home.html

Cary Frydman
Research Fields - Behavioral Finance, Neurofinance, Experimental Economics, Learning in

Markets

Teaching Fields - Financial Economics, Microeconomics, Behavioral Finance, Neuroeconomics .

Dissertation Title:  Essays in Neurofinance.

Dissertation Committee:  Antonio Rangel, Peter Bossaerts, Colin Camerer and Nicholas

Barberis.

References: Antonio Rangel, Peter Bossaerts, Colin Camerer and Nicholas Barberis.

Home Page   (Includes papers, work in progress, conference participation and papers, brief

explanation of research and teaching experience.)   

占楼。。。

占楼。。。。

占楼 。。。

sounds good.