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The following paper is a theoretical introduction of the misinformation effect to behavioural finance. The misinformation effect causes a memory report regarding an event or particular knowledge to become contaminated with misleading information from another source. The paper aims to describe...
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fragility of financial intermediaries in the Diamond-Dybvig theory of banking. Many of these articles focus on the interaction …
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credit enforcement is prohibitively costly. The theory helps to explain how the three observed phenomena of output decline …
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