We study the emergence of bubbles in a laboratory experiment with large groups of individuals. The realized price is …

and chartists, comprises four features: (i) price determination by excess demand; (ii) a herding mechanism that gives rise …

herding behavior and market risk. Moreover, speculators' orders depend on price trends, market misalignments and fundamental … news. Using a mix of analytical and numerical tools, we show that a herding-induced market entry wave may amplify excess …

The existence of influence among participants on financial markets is affirmed by the theory of behavioural finance … influence, namely herding and individual social interaction. Herding behaviour is well known and has already been intensively … herding is dominant, the influence from individual social interaction plays a considerable role for the aggregated outcome of …

This paper employs numerical simulations of the Park and Sabourian (2011) herd model to derive new theory …-based predictions for how information risk and market stress influence aggregate herding intensity. We test these predictions … sell herding. The model also explains why buy, not sell, herding is more pronounced during the financial crisis. …

expectations by Bayesian learning based on observations from their own lifetimes. In this model, the stock price exhibits … approximated by a representative-agent model with constant-gain learning, where the gain parameter is related to the survival rate …