Bill Overview
Title: Trading Isn’t a Game Act
Description: This bill requires the Government Accountability Office (GAO) to study and report on the use of techniques including gamification (adding gamelike elements to encourage participation) and psychological nudges (behavioral interventions designed to influence decision-making) by online investment trading platforms. Further, the GAO must compare the investment activity, habits, and risk tolerance of customers exposed to such techniques and those who are not.
Sponsors: Rep. Casten, Sean [D-IL-6]
Target Audience
Population: Individuals using online investment trading platforms
Estimated Size: 15000000
- The bill targets online investment trading platforms, which are used globally.
- Individual investors who use these platforms will be the primary individuals impacted.
- Family members of investors might also be indirectly impacted due to changes in financial status resulting from investment decisions influenced by these platforms.
- The global population with internet access and financial resources to engage in online trading is substantial, suggesting a large target population.
Reasoning
- The policy impacts a large number of people who engage with online trading platforms in the US but the effects will vary depending on individuals' level of engagement with these platforms and their susceptibility to gamification techniques.
- The policy's financial implications, with a budget of $12,000,000 USD in year 1 and $30,000,000 USD over 10 years, necessitate a focus on awareness and educational components around these platforms.
- Not all users of trading platforms will be directly affected, but the study could lead to future regulatory changes that indirectly impact all users.
- The variation in socio-economic status, investment knowledge, and risk tolerance will influence the impact of the proposed policy.
Simulated Interviews
Software Engineer (New York)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I like the gamified elements because it makes investing more engaging.
- I think being aware of how these platforms use psychology can help me make better decisions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Marketing Manager (California)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- I've noticed how addictive these apps can be.
- Hope this policy helps in making these platforms more transparent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Freelance Designer (Illinois)
Age: 30 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- The gamified features are fun but I do wonder if they lead me to take on more risk.
- It'd be good to know more about their impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Teacher (Texas)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- I use these platforms sparingly, so I’m not sure how much this policy will affect me directly.
- However, more transparency on these platforms is never a bad thing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
College Student (Florida)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 16/20
Statement of Opinion:
- The gamification keeps me interested, but I worry about making uninformed decisions.
- Hopefully, this policy leads to more educational resources tailored for beginners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Entrepreneur (Georgia)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I don’t mind the gamified elements; I find them engaging and informative.
- I am skeptical about whether this policy will make any significant difference for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Nurse (Ohio)
Age: 47 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 15/20
Statement of Opinion:
- I’m cautious with my investments and avoid overly gamified apps.
- The policy might help reduce unwanted risk-taking among less experienced investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Retired (Colorado)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- I prioritize security over the excitement these apps create.
- The policy might raise awareness about potential issues in riskier platforms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Teacher (Massachusetts)
Age: 26 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- The gamified system has taught me a lot about trading on a small scale.
- I am curious to see if this policy increases educational resources on these platforms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Freelance Writer (Washington)
Age: 34 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- I’ve had both good and bad experiences with these platforms.
- It's essential they provide a better understanding of the outcomes of their psychology techniques.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $12000000 (Low: $10000000, High: $15000000)
Year 2: $9000000 (Low: $7000000, High: $12000000)
Year 3: $6000000 (Low: $5000000, High: $8000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Ensuring the methodological robustness and unbiased nature of the GAO's study will be critical.
- The wide-ranging effects of 'gamification' in trading platforms could take significant time to analyze comprehensively.
- Coordination with financial and regulatory bodies might enhance the report's comprehensiveness and acceptability.
- Consideration of the rapidly evolving nature of online trading platforms and technologies.