Data-driven Nudges in Investment Apps ― An Opportunity to Develop a Healthy and Sustainable Financial Environment Amidst the Retail Investment BoomPromovendus: Mw. W.T. Yang
Promotores: Mw. Dr. C. Cauffman, Mw.Dr. M. Leszczynska
Duur: 15/10/2022 - 14/10/2026
Abstract:
Investment apps have sparked a boom in retail investing. However, common problems like underestimating investment risk, myopia and over-optimism make retail investors prone to irrational decisions that can lead to unbearable losses. Retail investors decision-making could be improved by the use of data-driven nudges that would facilitate informed and/or beneficial decision-making, and prevent investors from making irrational decisions. It is, however, unclear whether and/or to which extent such nudge mechanisms are legally permissible and which are the legal limitations that must be taken into account. My proposal aims at addressing these questions by conducting legal analysis, doctrinal studies and economic analysis.