Abstract
The purpose of this research is to experimentally clarify the influence both of mar-
ket factors related to market conditions and of investors’ individual factors related to
cognitive tendency on their investment behavior; for this purpose, we conducted an ex-
periment using an experimental market in which participants were asked to buy and sell
stocks whose prices were controlled. Specifically, we analyzed generalized linear mod-
els where each of three behavioral indicators related to investment (the ratio of trend
following trading, the extent to which a participant took risks, and disposition effect)
was a response variable and both market factors (market trend and volatility) and in-
vestors’ individual factors (risk attitude and degree of proficiency) were explanatory
variables, so that we could identify whether or not the explanatory variables explained
each response variable. Five professional traders and 11 personal investors participated
in this experiment. As a result, the following three things were clarified: First, it was
affected not by market factors but by their risk attitude whether they followed market
trends or not; second, the extent to which they took risks was affected both by market
factors and by their degrees of proficiency; finally, disposition effect was affected only
by degree of proficiency, which meant that professional traders could avoid disposition
effect.
