A hybrid neuro-experimental decision support system to classify overconfidence and performance in a simulated bubble using a passive BCI

Toma, Filip-Mihai

doi:10.1016/j.eswa.2022.118722

Cited by 12 publications

(7 citation statements)

References 107 publications

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“…The task is an adaptation of the one performed by (Smith et al 2014), with some changes: subjects traded in a simulated market where prices were generated exogenously and where subjects' trading decisions did not impact the price of the stock, and the experiment was run twice on the same set of subjects to observe learning effects between the two rounds. Eye movements were collected individually for each subject while they also had an EEG helmet positioned on their heads (Toma 2023;Toma and Miyakoshi 2021). Using the generated prices provided the advantage of simulating a realistic market in which individual investors would not impact market prices.…”

Section: Methodsmentioning

confidence: 99%

Gazing through the bubble: an experimental investigation into financial risk-taking using eye-tracking

et al. 2023

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Eye tracking can facilitate understanding irrational decision-making in contexts such as financial risk-taking. For this purpose, we develop an experimental framework in which participants trade a risky asset in a simulated bubble market to maximize individual returns while their eye movements are recorded. Returns are sensitive to eye movement dynamics, depending on the presented visual stimuli. Using eye-tracking data, we investigated the effects of arousal, attention, and disengagement on individual payoffs using linear and nonlinear approaches. By estimating a nonlinear model using attention as a threshold variable, our results suggest that arousal positively influences trading returns, but its effect becomes smaller when attention exceeds a certain threshold, whereas disengagement has a higher negative impact on reduced attention levels and becomes almost irrelevant when attention increases. Hence, we provide a neurobehavioral metric as a function of attention that predicts financial gains in boom-and-bust scenarios. This study serves as a proof-of-concept for developing future psychometric measures to enhance decision-making.

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Section: Methodsmentioning

confidence: 99%

Gazing through the bubble: an experimental investigation into financial risk-taking using eye-tracking

et al. 2023

Self Cite

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“…Also, chance exists that investors may underestimate risk component of their investments, thus leading to insufficient diversification of their portfolios. The investors may resort to speculative activity, which can adversely affect their performance by underestimating ability to time the market (Toma & Mihai, 2023). Based on above discussion it is hypothesized that: H1: There is a significant effect of overconfidence on Investors' investment decisions…”

Section: Literature Reviewmentioning

confidence: 99%

The Investment Decision-Making: Understanding Overconfidence, Herding and Risk Aversion Among Individual Investors

Zafar,

Ashraf,

Raza

2024

JSSD

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The main objective of present study is to analyze impact of overconfidence, herding behavior, disposition effect & risk aversion on investment decisions made by investors. The study's population comprises individual investors who engage in investments within the Pakistan Stock Exchange. The study's sample comprises 365 individual investors who participate in the Pakistan stock exchange over survey questionnaire. The results are analyzed using a structural equation model by researcher. The findings of this study suggest that there exists a statistically significant and positive correlation between the overconfidence, herding behavior, disposition effect, and risk aversion in relation to investors' decision-making regarding their investments. Current work offers novelty by unveiling complex interplay of psychological biases and risk preferences in determining investment decisions. The study focus is narrowed down to individual investors on PSE and paves way for exploration of future research, like, investigating same phenomena among institutional investors to enhance the inclusiveness of observed variables as well as their relationship.

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“…6. Making Decisions: The BCI system makes determinations based on the patterns related to the user's intentions or states [5]. As an illustration, it can determine whether the user wants to manipulate a cursor on a particular screen or initiate a command.…”

Section: Integration Of Bci System With Physiological Signals Eegmentioning

confidence: 99%

A Comprehensive Survey of Brain-Computer Interface Technology in Healthcare: Research Perspectives

Vimal Cruz,

Jamal,

Sethuraman

2024

Preprint

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The Brain-Computer Interface (BCI) technology has emerged as a groundbreaking innovation with profound implications across diverse domains, particularly in healthcare. By establishing a direct communication pathway between the human brain and external devices, BCI systems offer unprecedented opportunities for diagnosis, treatment, and rehabilitation, thereby reshaping the landscape of medical practice. However, despite its immense potential, the widespread adoption of BCI technology in clinical settings faces several challenges. These include the need for robust signal acquisition and processing techniques, ensuring user safety and privacy, addressing ethical considerations, and optimizing user training and adaptation. Overcoming these challenges is crucial to unleashing the complete potential of BCI technology in healthcare and realizing its promise of personalized, patient-centric care. This review work underscores the transformative potential of BCI technology in revolutionizing medical practice. This paper offers a comprehensive analysis of medical-oriented BCI applications by exploring the various uses of BCI technology and its potential to transform patient care.

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A hybrid neuro-experimental decision support system to classify overconfidence and performance in a simulated bubble using a passive BCI

Cited by 12 publications

References 107 publications

Gazing through the bubble: an experimental investigation into financial risk-taking using eye-tracking

Gazing through the bubble: an experimental investigation into financial risk-taking using eye-tracking

The Investment Decision-Making: Understanding Overconfidence, Herding and Risk Aversion Among Individual Investors

A Comprehensive Survey of Brain-Computer Interface Technology in Healthcare: Research Perspectives

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