Informative social interactions
Informative social interactions
Household finances are confidential and discussions are limited to a subset of peers. We collect novel representative survey data to examine separately whether interactions with inner and outer social circles influence return perceptions, expectations, and exposure to a widely known financial instrument in a developed economy with multiple information sources. We find that a respondent’s connectedness, proxied by perceived prevalence of information or participation in the small financial circle, improves expectation accuracy indirectly, through boosting accuracy of perceived past returns; and influences stock participation and exposure not only by influencing expectations, but also directly.
246-263
Arrondel, Luc
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Calvo-Pardo, Hector
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Giannitsarou, Chryssi
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Haliassos, Michael
cc2bb5cb-d6ac-46cd-9e0f-91db10f17933
Arrondel, Luc
51a6cd5b-0df0-453f-b29e-09fd5dee03fa
Calvo-Pardo, Hector
07a586f0-48ec-4049-932e-fb9fc575f59f
Giannitsarou, Chryssi
f2b54f93-23ca-4a61-a52a-3380cc223f5d
Haliassos, Michael
cc2bb5cb-d6ac-46cd-9e0f-91db10f17933
Arrondel, Luc, Calvo-Pardo, Hector, Giannitsarou, Chryssi and Haliassos, Michael
(2022)
Informative social interactions.
Journal of Economic Behavior & Organization, 203 (11), .
Abstract
Household finances are confidential and discussions are limited to a subset of peers. We collect novel representative survey data to examine separately whether interactions with inner and outer social circles influence return perceptions, expectations, and exposure to a widely known financial instrument in a developed economy with multiple information sources. We find that a respondent’s connectedness, proxied by perceived prevalence of information or participation in the small financial circle, improves expectation accuracy indirectly, through boosting accuracy of perceived past returns; and influences stock participation and exposure not only by influencing expectations, but also directly.
Text
Informative_Social_Interactions_JEBO_2022
- Accepted Manuscript
More information
Accepted/In Press date: 6 September 2022
e-pub ahead of print date: 23 September 2022
Identifiers
Local EPrints ID: 469823
URI: http://eprints.soton.ac.uk/id/eprint/469823
ISSN: 0167-2681
PURE UUID: 09b4b1ba-ef26-4a3d-b0be-db395b1c6f86
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Date deposited: 27 Sep 2022 16:30
Last modified: 17 Mar 2024 03:05
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Contributors
Author:
Luc Arrondel
Author:
Chryssi Giannitsarou
Author:
Michael Haliassos
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