Social Media, Influencers, and Investors

From being too overconfident when picking stocks to anchoring on a low number when buying a car - Guggenmos and Rennekamp illustrate the common biases that individuals face and connect these to managerial decisions. They also discuss their newly coined term I-FOMO, Investor Fear of Missing Out, which is used to assess how changing investor communication practices are impacting everyday investors. 

Professor Ryan Guggenmos and Professor Kristina Rennekamp (MS '11 and PhD '12) introduce the field of behavioral accounting by discussing the common biases that individuals, investors, managers, and regulators face when making decisions.