Jurkatis, Simon; Kremer, Stephanie; Nautz, Dieter - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2012
Herd behavior is often viewed as a signicant threat for the stability and eciency of nancial markets. This paper sheds new light on the relevance of herd behavior for observed correlation of trades. We introduce numerical simulations of a herd model to derive theory-guided predictions regarding...