Debiasing the Disposition Effect with Noninvasive Brain Stimulation: The Role of Cognitive Control

• 成果类型: Article
• 署名作者: Niu, Xiaofei; Li, Jianbiao; Li, Dahui; Cao, Qian
• 署名单位: Shandong University; University of Minnesota System; University of Minnesota Duluth; Nanjing University of Finance & Economics
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.4596
• 发表日期: 2023
• 页码: 6293-6312
• 关键词: Behavioral bias; Disposition effect; cognitive control; tdcs

摘要

This study tests whether modulating a brain region associated with cognitive control using noninvasive brain stimulation affects the disposition effect. A participant trades stocks in an experimental asset market while their level of cognitive control is exogenously manipulated by applying weak current stimulation to a control-related cortical region. We find that the stimulation significantly affects the participant's cognitive control and tendency to exhibit the disposition effect. This result is also obtained for financial professionals. We thus provide evidence that cognitive control is important for the disposition effect.