The Ontario Securities Commission (OSC) published a behavioural science research report examining how gamification can be used to enhance retail investor decision-making and outcomes, while also outlining mitigation techniques to address potential negative behavioural effects. The report, Gamification and Retail Investing: Positive Use Cases and Mitigation Techniques, is based on an online experiment with over 4,000 Canadians in a simulated trading environment. Participants allocated a hypothetical USD 10,000 across eight stocks and were exposed to one of four gamification techniques intended to encourage diversification: a real-time diversification score, goal framing, leaderboards, or rewards (badges). All four techniques produced a modest increase in portfolio diversification of 3.5% to 4.5%. The publication builds on the OSC’s earlier work on digital engagement practices in retail investing and was conducted in partnership with the Behavioural Insights Team (BIT).
Ontario Securities Commission publishes behavioural science research on gamification techniques to improve retail investor diversification
The Ontario Securities Commission published a report on using gamification to improve retail investor decision-making, revealing that techniques like real-time diversification scores and leaderboards modestly increased portfolio diversification by 3.5% to 4.5% in a study with over 4,000 Canadians. The research, conducted with the Behavioural Insights Team, also outlines mitigation strategies for potential negative effects.