Herding behavior in asset markets

Christian Hott

Journal of Financial Stability, 2009, vol. 5, issue 1, 35-56

Abstract: This paper examines the origins of herding behavior in asset markets and its potential to produce a price bubble. I present a model which explains the emergence and the development of herding behavior via asymmetric information and Baysian learning. A corresponding price bubble is explained through herding behavior without assuming any speculative incentives on the part of the investors.

Keywords: Herding; behavior; Price; bubbles; Baysian; learning (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:5:y:2009:i:1:p:35-56

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