Crowded Decisions: How Environmental Density Shapes Mobile Investment Behavior

ABSTRACT Neo‐brokers have democratized access to the stock market, primarily through mobile platforms, attracting novice retail investors. However, research on the influence of environmental factors on mobile investment behavior is scarce. In this paper, we investigate how the immediate environment of potential investors influences their decisions and examine how the level of crowdedness influences the likelihood and amount of investment. Across three studies, crowdedness is associated with lower investment likelihood and lower investment amounts. This effect is mediated by investors’ feelings of pleasure, with dominance additionally influencing investment amount. Our findings suggest that mobile brokerage platforms may seek to mitigate the effects of environmental factors through privacy‐conscious, context‐aware design.