PUBLIC-PRIVATE PARTNERSHIPS AND RETAIL INVESTOR BEHAVIOR: A DESCRIPTIVE STUDY ON ESCALATING RISK TOLERANCE IN BULLISH MARKETS

Abstract

Retail investor behavior has shifted noticeably in bullish markets, with more individuals willing to take higher risks. This paper explores how public-private partnerships (PPPs), though not always at the forefront of investor behavior discussions, may be quietly shaping these shifts. My aim is to examine the indirect impact of PPP-driven efforts—like fintech tie-ups, digital onboarding platforms, and financial education programs—on retail investors’ confidence and decision-making. Using a descriptive, literature-based approach, I trace how these collaborations between government and private entities help create an environment of trust and accessibility. These aren’t just infrastructure improvements; they change how people perceive the market itself. When systems feel more reliable and easier to access, people are more likely to engage—and take bigger bets.The paper also looks at how policy messaging and media coverage, often rooted in PPP initiatives, reinforce this growing appetite for risk. While increased participation is a positive trend, it’s important to consider what this means for new or inexperienced investors navigating volatile markets. Rather than offering hard data, this study opens up space for deeper questions: Are we unintentionally encouraging risk without safeguards? What responsibility do institutions have when their reforms shift investor behavior? By bringing PPPs into the behavioral finance conversation, this paper highlights an overlooked but important link that deserves closer attention.