Objective In the finance discipline a lot of work has been conducted on the pricing of securities and derivatives. These pricing studies have been very important for the financial industry and economy in general. Recently, finance scholars turned to the psychology discipline to better understand how market participants behave in financial markets.The project will analyze market participants' behaviour in financial markets by truly understanding the underlying decision-making process of market participants. Since this process is latent (not directly observable), it is hard to study. However, the recent developments in the marketing and psychological disciplines provide tools that enable to model these latent processes.The project will run experiments with private investors to model the underlying decision-making process, and combine this experimental data with 'hard' trading data of the same private investors. In addition, it is recognized that the underlying decision-making process of market participants may be different for different segments of market participants.That is, while previous research modelled the 'average' market participant (by running a model across the whole population), here it allows for heterogeneity in the underlying decision-making process and hence it will be able to explain and understand heterogeneous behaviour that will be observed in financial markets. This project takes a marketing-finance interface approach, in that it will use the model that describes the underlying decision-making process as an input for the marketing product development model.That is, the project will not only yield understanding in how market participants behave, based on the true driver of behaviour, the decision-making process of market participants, but also will yield a methodology to develop new financial products that will reflect the behaviour of market participants. Fields of science social sciencesmedia and communicationsjournalismnatural sciencescomputer and information sciencesdatabasessocial sciencespsychologysocial psychology Keywords Decision Making Financial Services Preference Risk Attitude Risk Perception Programme(s) FP6-MOBILITY - Human resources and Mobility in the specific programme for research, technological development and demonstration "Structuring the European Research Area" under the Sixth Framework Programme 2002-2006 Topic(s) MOBILITY-4.2 - Marie Curie International Reintegration Grants (IRG) Call for proposal FP6-2004-MOBILITY-12 See other projects for this call Funding Scheme IRG - Marie Curie actions-International re-integration grants Coordinator MAASTRICHT UNIVERSITY EU contribution No data Address Minderbroedersberg 4-6 MAASTRICHT Netherlands See on map Links Website Opens in new window Total cost No data
