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 …

We develop a novel financial market model in which the stock markets of two countries are linked via and with the … foreign exchange market. To be precise, there are domestic and foreign speculators in each of the two stock markets which rely … speculators require foreign currency to conduct their trades, all three markets are connected. Our setup entails a natural …

withdrew money one month prior to the events. Thedegree of herding among funds is statistically significant, but moderate.Herding …