Herd Behavior in Financial Markets.

We study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty makes herding possible. In the first treatment, subjects her...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autor principal: Cipriani, Marco
Otros Autores: Guarino, Antonio
Formato: Electrónico eBook
Idioma:Inglés
Publicado: Washington : International Monetary Fund, 2008.
Colección:IMF Working Papers.
Temas:
Capitalists and financiers > Psychology > Econometric models.
Investments > Decision making > Econometric models.
Collective behavior > Econometric models.
Investissements > Prise de décision > Modèles économétriques.
Comportement collectif > Modèles économétriques.
Investments > Decision making > Econometric models
Acceso en línea:Texto completo
Descripción
Sumario:We study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous experimental evidence on student subjects. A proportion of subjects, however, engage in contrarianism, something not accounted for by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theor.
Descripción Física:1 online resource (30 pages)
ISBN:9781451914528
1451914520

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