One reason for market failure is the inherent complexity that excludes non-sophisticated users. Market complexity can be reduced by adapting the market rules or by simplifying the user interface. Just recently researchers started to address this topic and identified the need to merge market and interface design. Thus far it remains unclear how to design usercentric market interfaces. In a prediction market for economic variables, traders can customize their trading interface according to their informational needs. Surprisingly, we show that on average an increase in information reduces trading performance. An explanation for this effect might lie in cognitive theory. Displaying more information increases the participants' cognitive load and hence might reduce trading performance. We are able to distinguish between trading behaviour and performance and thereby provide insight into the interplay between information and decision making. Finally, we also track the influence of individual information elements and identify those that improve or decrease trading performance.
One of the main objectives facing service designers is presenting users with information from which to base their decisions. While traditional service research often emphasizes understanding of end users from a technology acceptance perspective, it fails to consider the individual economic dimensions of interactions within a system as in electronic markets. We study market participants from an individual perspective who interact in a repeated decision-making environment that closely resembles decision-making in financial markets. In contrast to financial markets (i) the outcome of events in our market is finally known and (ii) we can ex-post measure the participants' trading performance. In our field study with nearly 2,000 active traders and over 215,000 single trading decisions we analyze the impact of emotion regulation, cognition and risk on trading behavior and performance. Our analysis indicates a significant user heterogeneity, which suggests individualizing future market experiences.
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