9th Joint International Conference on Information Sciences (JCIS-06)

Effect of price quoting on financial assets price

Authors
Tal Shavit 0, Shosh Shahrabani, Uri Benzion
Corresponding Author
Tal Shavit
0The Open University of Israel
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DOI
https://doi.org/10.2991/jcis.2006.179How to use a DOI?
Keywords
Behavioral Finance, Experiment, Myopic Loss Aversion, WTP, WTA.
Abstract
Stock options are usually sold in bundles of 100 units, and their price can be quoted either per unit or per bundle. In this paper, the effect of different methods of quoting financial asset prices on the subjective value of a contract was examined experimentally. In particular, we examined differences in subjects’ Willingness-To-Pay (WTP) and Willingness-To-Accept (WTA) for financial assets depending upon whether prices are quoted per unit or per bundle. We found that subjects bid (ask) a higher price when prices are quoted per unit than when they are quoted per bundle. The results indicated that different quoting methods affect the bidding price for risky assets. These results can have important implications for trading on financial markets.
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Proceedings
9th Joint International Conference on Information Sciences (JCIS-06)
Publication Date
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ISBN
978-90-78677-01-7
DOI
https://doi.org/10.2991/jcis.2006.179How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Tal Shavit
AU  - Shosh Shahrabani
AU  - Uri Benzion
PY  - NaN/NaN
DA  - NaN/NaN
TI  - Effect of price quoting on financial assets price
BT  - 9th Joint International Conference on Information Sciences (JCIS-06)
PB  - Atlantis Press
UR  - https://doi.org/10.2991/jcis.2006.179
DO  - https://doi.org/10.2991/jcis.2006.179
ID  - ShavitNaN/NaN
ER  -