Why do so few hold stocks : theory and evidence

This study develops a life-cycle model where investors make investment decisions in a realistic environment. Model results show that personal illiquid projects (housing and children), fixed costs (once-off/per-period participation costs plus variable/fixed transaction costs) and endogenous risky human capital (with permanent, transitory and disastrous shocks) together are able to address both the non-participation puzzle and the age-effects puzzle. Empirical implications of the model are examined using Heckman’s two-step method with the latest five Surveys of Consumer Finance (SCF). Regression results show that liquidity, informational cost and human capital are indeed the major determinants of participation and asset allocation decisions at different stages of an investor’s life.

M-technology, Consumption and Gambling: A Conceptualisation of Consumer Vulnerability in an M-gambling Marketplace

Technology imbued m-marketing systems influence the consumptive lives of citizens, by facilitating anytime, anywhere business-to-consumer interactions. Business pundits’ enthusiasm towards mobile services (m-services) has been driven by the promise of a marketspace context involving seamless, business-to-consumer interactions that can be simultaneously impulse-driven, highly entertaining and omnipresent. Arguably, gambling too is impulse-driven, exciting and easily accessible. An important question that needs to be addressed is: how the convergence of mobile technology and gambling will impact the millennial consumer. The authors address this question by examining the contextually bounded interactions between internal and external factors that make mobile phone users potentially vulnerable during m-gambling interactions. By examining key themes that describe the convergence of m-technology and gambling, we clarify the experiential nature of m-gambling and its relationship to consumer vulnerability.