TY - GEN
T1 - Decision support and cognitive limitations in online share trading
AU - Richardson, Alex
AU - Gregor, Shirley
AU - Heaney, Richard
PY - 2006
Y1 - 2006
N2 - It is a risky undertaking for novice share traders to trade in a real world market. Their lack of experience and familiarity means they can struggle to adequately form correct pricing decisions for securities. Decision support systems can be designed to reduce cognitive burden, though within the finance literature their usefulness is little studied. The current study looks at the influence of cognitive abilities and decision making speed on financial performance, as well as the effect of providing decision support for novice traders. It was found that traders who had decision support consistently outperformed those who did not have support. The decision aid also mitigated the negative effect of higher decision making speeds and lower cognitive ability.
AB - It is a risky undertaking for novice share traders to trade in a real world market. Their lack of experience and familiarity means they can struggle to adequately form correct pricing decisions for securities. Decision support systems can be designed to reduce cognitive burden, though within the finance literature their usefulness is little studied. The current study looks at the influence of cognitive abilities and decision making speed on financial performance, as well as the effect of providing decision support for novice traders. It was found that traders who had decision support consistently outperformed those who did not have support. The decision aid also mitigated the negative effect of higher decision making speeds and lower cognitive ability.
UR - http://www.scopus.com/inward/record.url?scp=84867839620&partnerID=8YFLogxK
M3 - Conference contribution
SN - 1740971256
SN - 9781740971256
T3 - Local and Global in Knowledge Management - Why Culture Matters, Proceedings of the 8th Australian Conference of Knowledge Management and Intelligent Decision Support
SP - 185
EP - 200
BT - Local and Global in Knowledge Management - Why Culture Matters, Proceedings of the 8th Australian Conference of Knowledge Management and Intelligent Decision Support
T2 - 8th Australian Conference of Knowledge Management and Intelligent Decision Support - Why Culture Matters: The Local and Global in Knowledge Management, ACKMIDS'2005
Y2 - 5 December 2005 through 6 December 2005
ER -