Effect of price quoting on financial assets price
- Tal Shavit 0, Shosh Shahrabani, Uri Benzion
- Corresponding Author
- Tal Shavit
0The Open University of Israel
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- https://doi.org/10.2991/jcis.2006.179How to use a DOI?
- Behavioral Finance, Experiment, Myopic Loss Aversion, WTP, WTA.
- 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.
- 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 -