Multidimensional uncertainty and herd behavior in financial markets
Article Abstract:
The information held by traders and its quality as well as the existence and effects of shocks are some of the factors that increase the potential of herding behavior in the financial markets. The information and shocks to the financial markets amounts to the multidimensionality of uncertainty in the financial markets. If only one of the factors is present, the market can offset the effects of the uncertainty and induce a negative potential for herding behavior.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1998
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Private information and trade timing
Article Abstract:
The financial situation of an investor will determine how the investor behaves after receiving private information about trading stock. Budget constraints will determine how much stock is sold and when it is sold.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2000
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A preference regime model of bull and bear markets
Article Abstract:
The standard capital assets pricing model and other shifting preferences can provide several prominent aspects of financial market data.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2000
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