Mind over market? New study reveals how cognitive abilities explain price bubbles
In a controlled laboratory experiment, economists demonstrated that two mental abilities – analytical thinking and the ability to assess the behaviour of others – play a key role in how people react to identical market information. The combination of these abilities doesn’t just shape trading strategies, but also determines gains or losses. A particularly noteworthy finding was that greater cognitive ability does not automatically lead to better performance – it is the right combination that makes the difference.

The detailed study by Adreas Hefti, Professor of Economics at the ZHAW School of Management and Law, Steve Heinkey (University of Fribourg) and Frédéric Schneider (University of Cambridge) can be found here(PDF 1,3 MB).
Kontakt
Prof. Andreas Hefti, ZHAW School of Management and Law
Tel.: +41 (0) 58 934 79 48
E-mail: andreas.hefti@zhaw.ch