Abstract In financial markets, investment options are relatively fixed but may occasionally change as new securities (tickers) are introduced to the markets. Theory on exploratory behavior suggests that when new tickers are introduced, the text completion decision aid (autocomplete) can facilitate diversion of market participants from their initially intended ticker to the newly introduced ticker. We analyze whether such diversions have an economic impact in terms of transaction loss. Consistent with our hypothesis, we provide evidence that upon ticker introduction, turnover of securities that are syntactically similar to a newly introduced security is significantly reduced by 3%–5% around the starting day of trade of the new security. Autocomplete appears to have a significant economic effect on market transactions.


    Access

    Download

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    On the economic effects of the text completion interface: empirical analysis of financial markets


    Contributors:
    Rubin, Eran (author) / Rubin, Amir (author)

    Published in:

    Electronic Markets ; 31 , 3 ; 717-735


    Publication date :

    2021




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English



    Classification :

    BKL:    85.40 Marketing / 83.72 Verkehrswirtschaft





    Impact of the Financial Crisis on Capital Markets and Global Economic Performance

    Jaroš, J. / Melichar, V. / Švadlenka, L. | British Library Conference Proceedings | 2014


    Machine Learning Powered Text Auto-Completion and Generation

    Padmanandam, Kayal / Nikhitha, Jilla / Sri, Parvathaneni Pooja et al. | IEEE | 2023


    Economic analysis of ride-sourcing markets

    Zha, Liteng | Online Contents | 2016