Deviant Behavior in Cryptocurrency Markets

• In Event: Poster Session

Abstract

Current research related to the broad area of deviant behavior in financial markets appears to either evaluate a propensity to be victimized or a predisposition to victimize. Due to this binary approach by researchers, there is a gap in research that provides contextual intelligence on when, or if, individuals may drift between these two outcomes, especially in instances involving cryptocurrencies. Self-perception, i.e., one’s ability to adequately assess one’s own knowledge, may be a key determinant in both the decision to victimize others and the likelihood that one may be victimized. This study will experimentally test if lower self-perception scores are related to a greater likelihood of both perpetrating fraud and being victimized by fraud. Secondarily, this study will test if the threat of punishment is an effective deterrent to deviant behavior in financial markets. Subjects will be randomly assigned to three groups. We will manipulate the subjects’ self-perception levels via a series of baseline questions. We will assess participants’ likelihood of being victimized through a survey where they are asked to identify fraudulent schemes. We will assess their likelihood of perpetrating fraud via a web-based fraud game that provides individuals the opportunity to commit fraudulent acts to increase their score.

Author

• James McDowell, Liberty University