The Library
Herding, contrarianism and delay in financial market trading : a lab experiment
Tools
Park, Andreas and Sgroi, Daniel (2010) Herding, contrarianism and delay in financial market trading : a lab experiment. In: Invited Speaker : Experimental and Behavioural Forum : Financial Herding, Department of Economics, University of Warwick, 7 Oct 2010 (Unpublished)
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/news/e...
Abstract
Economic theory routinely assumes rational trading and efficient prices, but these two may contradict each-other: rational traders will seek to observe each-other and through Bayesian inference infer what they can from the actions of others. Early incorrect information can thereby infect the decisions of many. We test this theory experimentally, as it is only in a controlled laboratory that we know what information traders posses and how it is used. We find that some types of information can drive herding and contrarian behaviour, potentially creating a short-run wedge between market prices and fundamental values. We also find that traders have a tendency to behave simultaneously that complements informationbased theory.
Item Type: | Conference Item (Paper) | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Official Date: | 7 October 2010 | ||||
Dates: |
|
||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Unpublished | ||||
Conference Paper Type: | Paper | ||||
Title of Event: | Invited Speaker : Experimental and Behavioural Forum : Financial Herding | ||||
Type of Event: | Other | ||||
Location of Event: | Department of Economics, University of Warwick | ||||
Date(s) of Event: | 7 Oct 2010 |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |