Taming the bias zoo

Hongqi Liu, Cameron Peng, Wei A. Xiong, Wei Xiong

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


The success of behavioral economics has led to a new challenge: many biases offer observationally similar predictions for a targeted financial anomaly. To tame this bias zoo, we combine subjective survey responses with observational data to propose a new approach, one that is robust to question-specific biases introduced through surveys. We illustrate this approach by administering a nationwide survey of Chinese retail investors to elicit their trading motives. In cross-sectional regressions of respondents’ actual turnover on survey-based trading motives, perceived information advantage and gambling preference dominate other motives, though they are not the most prevalent biases based on survey responses.

Original languageEnglish (US)
JournalJournal of Financial Economics
StateAccepted/In press - 2021

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


  • Bias zoo
  • Excessive trading
  • Gambling preference
  • Perceived information advantage


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