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Confidence Management in Tournaments
Deng, Shanglyu - 2020
An incumbent employee competes against a new hire for bonus or promotion. The incumbent's ability is commonly known, while that of the new hire is private information. The incumbent is subject to a perceptional bias: His prior about the new hire's type differs from the true underlying...
Persistent link: https://www.econbiz.de/10012481769
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Positive Feedback Investment Strategies and Destabilizing Rational Speculation
De Long, J. Bradford - 1989
Analyses of the role of rational speculators in financial markets usually presume that such investors dampen price fluctuations by trading against liquidity or noise traders. This conclusion does not necessarily hold when noise traders follow positive-feedback investment strategies buy when...
Persistent link: https://www.econbiz.de/10012476174
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The Survival of Noise Traders in Financial Markets
De Long, J. Bradford - 1988
We use the revised estimates of U.S. GNP constructed by Christina Romer (1989) to assess the time-series properties of U.S. output per capita over the past century. We reject at conventional significance levels the null that output is a random walk in favor of the alternative that output is a...
Persistent link: https://www.econbiz.de/10012476346
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The Economic Consequences of Noise Traders
De Long, J. Bradford - 1987
The claim that financial markets are efficient is backed by an implicit argument that misinformed "noise traders" can have little influence on asset prices in equilibrium. If noise traders' beliefs are sufficiently different from those of rational agents to significantly affect prices, then...
Persistent link: https://www.econbiz.de/10012476673
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Finance and the Preservation of Wealth
Gennaioli, Nicola - 2013
We introduce the model of asset management developed in Gennaioli, Shleifer, and Vishny (2012) into a Solow-style neoclassical growth model with diminishing returns to capital. Savers rely on trusted intermediaries to manage their wealth (claims on capital stock), who can charge fees above costs...
Persistent link: https://www.econbiz.de/10012459544
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Money Doctors
Gennaioli, Nicola - 2012
investment, and allows managers to charge higher fees to investors who trust them more. Money managers compete for investor funds … by setting their fees, but because of trust the fees do not fall to costs. In the model, 1) managers consistently … involve sharing of expected returns between managers and investors, with higher fees in riskier products, 3) managers pander …
Persistent link: https://www.econbiz.de/10012460486