We offer a new social approach to investment decision making and asset prices. Investors discuss their strategies and convert others to their strategies with a probability that increases in investment returns. The conversion rate is shown to be convex in realized returns. Unconditionally, active strategies (e.g., high variance and skewness) dominate, although investors have no inherent preference for these characteristics. The model has strong predictions for how the adoption of active strategies depends on investors’ social networks. In contrast with nonsocial approaches, sociability, self-enhancing transmission, and other features of the communication process determine the popularity and pricing of active investment strategies.

中文翻译：

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社会传播偏差和投资者行为

我们为投资决策和资产价格提供了一种新的社会方法。投资者讨论他们的策略并将其他人转换为他们的策略，从而增加投资回报。转换率在已实现回报中显示为凸的。无条件地，主动策略（例如，高方差和偏度）占主导地位，尽管投资者对这些特征没有固有的偏好。该模型对积极策略的采用如何取决于投资者的社交网络有很强的预测。与非社交方法相比，社交性、自我增强传播和其他沟通过程的特征决定了主动投资策略的受欢迎程度和定价。