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Does risk sorting explain overpricing in experimental asset markets?

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  • Kiss, Hubert J.
  • Kóczy, László Á.
  • Pintér, Ágnes
  • Sziklai, Balázs R.

Abstract

Sorting according to the gender or cognitive abilities of the traders has been investigated as a potential source of overpricing in asset markets. Here we study if sorting according to risk attitudes matters, motivated by the fact that filtering out risk-averse investors is practiced widely in Europe and is in line with the Markets in Financial Instruments Directive (MiFID) of the EU.

Suggested Citation

  • Kiss, Hubert J. & Kóczy, László Á. & Pintér, Ágnes & Sziklai, Balázs R., 2022. "Does risk sorting explain overpricing in experimental asset markets?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).
    • Handle: RePEc:eee:soceco:v:99:y:2022:i:c:s2214804322000568
    DOI: 10.1016/j.socec.2022.101882
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