Publication / 2024

Trading Gamification and Investor Behavior


Chapkovski, P.

Khapko, M.

Marius Zoican


Chapkovski, P., Khapko, M., Zoican, M., forthcoming. "Trading Gamification and Investor Behavior", Management Science,.

Presented at these events

Experimental Finance Conference 2022 (Bonn Germany)

We study the effect of gamification on retail traders’ behavior using a randomized online experiment. Participants with lower financial literacy prefer platforms with hedonic gamification elements, such as confetti and achievement badges. On average, hedonic gamification increases trading volume by 5.17%. However, the difference in trading activity between gamified and nongamified platforms is driven primarily by self-selection (70%) rather than gamification (30%). Participants who prefer hedonic gamification exhibit noisy trading strategies, whereas those favoring nongamified platforms display stronger contrarian behavior. Further, price trend notifications enhance learning for investors with accurate beliefs, but they reinforce trading mistakes for those with incorrect beliefs.