Think Before You Invest: Motivations Behind Ponzi Scheme Investor Behavior
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Authors
Murphree, Irene
Issue Date
2019
Type
Thesis
Language
en_US
Keywords
Economics , Finance , Behavioral Economics , Behavioral Finance , Ponzi Scheme , Investor behavior
Alternative Title
Abstract
Ponzi schemes lead to significant financial losses. Prior research has investigated motivations behind Ponzi scheme investor behavior, but only one study has used an experiment to simulate a Ponzi scheme to investigate investor behavior (Sadiraj & Schram, 2018). I expand on this research by designing and conducting my own experiment to test my hypothesis that both investment exclusivity and manager reputation lead investors to ignore potential investment risks and trust the promise of high investment returns. The results suggest that manager reputation and investment exclusivity are individually significant in explaining investor behavior, but investment exclusivity has a smaller effect on investor motivation.
Description
An experimental study conducted to determine whether the reputation of the Ponzi scheme manager and exclusivity of the Ponzi scheme matter for investment in the Ponzi scheme
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The University of Nevada, Reno Libraries will promptly respond to removal requests related to content that violates intellectual property laws, data protections, or has been uploaded without creator consent. Takedown notices should be directed to our ScholarWolf team (scholarwolf@library.unr.edu) with information about the object, including its full URL and the nature of your complaint.
Citation
Publisher
License
In Copyright (All Rights Reserved)