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The effect of rating agencies on herd behaviour

Giovanni Ferri and Andrea Morone ()

Journal of Economic Interaction and Coordination, 2014, vol. 9, issue 1, pages 107-127

Abstract: This paper purports to provide some evidence on the effect of rating agencies in financial markets. By means of a laboratory experiment, we investigate the effect and interaction between private and public information. We reached two conclusions: (1) indeed, the rating agency can speed up price convergence, (2) but not always to the fundamental price. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Herd behaviour; Informational cascades; Rating agency; Bubble; C91; D82; D83 (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: The Effect of Rating Agencies on Herd Behaviour (2008) Downloads
Working Paper: The Effect of Rating Agencies on Herd Behaviour (2008) Downloads
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