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An offer you can't refuse? : incentives change what we believe

Ambuehl, Sandro - 2017

Much of economics assumes that higher incentives increase participation in a transaction only because they exceed more … costly, higher incentives also change reservation prices to further increase participation. A higher incentive makes people …. Hence, incentives change not only what people choose, but also what they believe their choices entail. This result informs …

Persistent link: https://www.econbiz.de/10011588031

Bet against the trend and cash in profits : an agent-based model of endogenous fluctuations of exchange rates

Ramos, Raquel A.; Bassi, Federico; Lang, Dany - 2020

This paper intends to contribute to the theoretical literature on the determinants of exchange rate fluctuations. We build an agent-based model, based on behavioral assumptions inspired by the literature on behavioral finance and by empirical surveys about the behavior of foreign exchange...

Persistent link: https://www.econbiz.de/10012660460

Network centrality and stock market volatility : the impact of communication topologies on prices

Hein, Oliver; Schwind, Michael; Spiwoks, Markus - In: Journal of finance and investment analysis 1 (2012) 1, pp. 199-232

We investigate the impact of agent communication networks on prices in an artificial stock market. Networks with different centralization measures are tested for their effect on the volatility of prices. Trading strategies diffuse through the different network topologies, mimetic contagion...

Persistent link: https://www.econbiz.de/10009511655

Individual Speculative Behavior and Overpricing in Experimental Asset Markets

Janssen, Dirk-Jan - 2018

explanations, using a market environment introduced by Lei, Noussair, and Plott (2001) where speculation is impossible. Taken …

Persistent link: https://www.econbiz.de/10012937410

Does a Better Price Informativeness Enhance the Functioning of the Commodity Markets?

Borocco, Etienne - 2019

Our research question focuses on how more informatives prices affect operators. Above all, I wonder who are the winners and the losers of the lower risk generated by a higher price informativeness. I study a two-period model with a spot market and a futures market for a commodity. Hedgers are...

Persistent link: https://www.econbiz.de/10012903280

Correlation Neglect in Belief Formation

Enke, Benjamin - 2013

Many information structures generate correlated rather than mutually independent signals, the news media being a prime example. This paper shows experimentally that in such contexts many people neglect these correlations in the updating process and treat correlated information as independent. In...

Persistent link: https://www.econbiz.de/10013072106

Correlation Neglect in Belief Formation

Enke, Benjamin - 2013

Persistent link: https://www.econbiz.de/10013082140

Noise, Beliefs, and Momentum

Jordan, Steven J. - 2013

We show in a simple framework that momentum trading can exist in equilibrium and momentum trading is profitable. Properties of the model ﬁt the empirics well. First, the model captures in a parsimonious manner both short-term overreaction and long-term reversals. Second, it predicts that...

Persistent link: https://www.econbiz.de/10013089438

Trust, but verify : The economics of scams in initial coin offerings

Phua, Kenny; Sang, Bo; Wei, Chishen; Yu, Gloria Yang - 2022

Losses from frauds and financial scams are estimated to exceed U.S. $5 trillion annually. To study the economics of financial scams, we investigate the market for initial coin offerings (ICOs) using point-in-time data snapshots of 5935 ICOs. Our evidence indicates that ICO issuers strategically...

Persistent link: https://www.econbiz.de/10013294032

Liquidity as an Investment Style

Ibbotson, Roger G. - 2013

We present comprehensive evidence in support of giving liquidity equal standing to size, value/growth, and momentum as investment styles, as defined by Sharpe (1992). First, we show that financial market liquidity, as identified by stock turnover, is an economically significant indicator of...

Persistent link: https://www.econbiz.de/10013093548