Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
999112 | Journal of Financial Stability | 2009 | 22 Pages |
Abstract
This paper examines the origins of herding behavior in asset markets and its potential to produce a price bubble. I present a model which explains the emergence and the development of herding behavior via asymmetric information and Baysian learning. A corresponding price bubble is explained through herding behavior without assuming any speculative incentives on the part of the investors.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics, Econometrics and Finance (General)
Authors
Christian Hott,