{"title":"Do traders overweight experience from first movers?","authors":"Naomi Boyd, Shenru Li","doi":"10.1111/jfir.12427","DOIUrl":null,"url":null,"abstract":"We examine empirically how trading by peers on a new platform influences others' adoption decisions. We model the adoption process and find the relation to be U‐shaped, with first movers greatly discouraging their peers from adoption and late movers slightly discouraging or encouraging their peers. Further analysis shows that the U‐shape is explained by social transmission bias rather than profitability.","PeriodicalId":47584,"journal":{"name":"Journal of Financial Research","volume":"25 1","pages":""},"PeriodicalIF":1.5000,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Financial Research","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1111/jfir.12427","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
We examine empirically how trading by peers on a new platform influences others' adoption decisions. We model the adoption process and find the relation to be U‐shaped, with first movers greatly discouraging their peers from adoption and late movers slightly discouraging or encouraging their peers. Further analysis shows that the U‐shape is explained by social transmission bias rather than profitability.
期刊介绍:
The Journal of Financial Research(JFR) is a quarterly academic journal sponsored by the Southern Finance Association (SFA) and the Southwestern Finance Association (SWFA). It has been continuously published since 1978 and focuses on the publication of original scholarly research in various areas of finance such as investment and portfolio management, capital markets and institutions, corporate finance, corporate governance, and capital investment. The JFR, also known as the Journal of Financial Research, provides a platform for researchers to contribute to the advancement of knowledge in the field of finance.