Knowledge@SMU
Publication Type
Journal Article
Publication Date
7-2008
Abstract
In financial markets, what part of a trader’s action is simply “following the crowd” or herding, and how much is based on the trader’s own information? Herding has been shown to decrease the stability and efficiency of markets, hence the interest in these behaviours. Marco Cipriani (Asian Division, IMF Institute) and Antonio Guarino (University College London) studied herd behaviour in a laboratory setting involving financial market professionals. Cipriani presented a co-authored IMF working paper on herd behaviour in financial markets at a recent seminar at the Singapore Management University. --------------------------------------------------------------------------------
Disciplines
Accounting | Business | Finance and Financial Management
Copyright Owner and Holder
Copyright © Singapore Management University 2012
Licece/Creative Commons Licence
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Article ID
1146
Subject(s)
Finance and Accounting
Citation
Knowledge@SMU.
Herd Behaviour in Financial Markets: Do Traders Follow the Crowd or Do Their Own Thing?. (2008). Knowledge@SMU.
Available at: https://ink.library.smu.edu.sg/ksmu/56