Sustainability, Prices and Emotions
We examine whether the sustainable character of an investment impacts asset prices. We use experimental markets with the structure introduced by Smith, Suchanek, and Williams (1988) to investigate the impact of sustainable attributes. Prior studies suggest that investors experience positive emotions when choosing a sustainable investment and that positive emotions correlate with purchases and overpricing. The objective of our study is to investigate the implied relationship in a controlled lab environment. Specifically, we test whether sustainability positively influences asset prices through its positive impact on emotions. We manipulate sustainability levels by providing different sustainability information about the tradeable asset and analyze investors’ emotions during trading using a face-reading software. Moreover, we test how participants’ sustainability preferences affect their trading behavior.
Date: 18 January 2023, 14:30
Venue: This an Online event. Individuals interested in attending should sign up using the link for booking.
Speakers: Mennatallah Balbaa (LMU Munich), Mareike Worch (LMU Munich)
Organising department: Nuffield College
Organiser: Noah Bacine (University of Oxford)
Organiser contact email address: noah.bacine@nuffield.ox.ac.uk
Part of: CESS Colloquium Series
Booking required?: Recommended
Booking url: https://cess-nuffield.nuff.ox.ac.uk/events/colloquium/mennatallah-balbaa-mareike-worch-lmu-munich/
Booking email: noah.bacine@nuffield.ox.ac.uk
Audience: Public
Editors: Noah Bacine, Martina Beretta