SPECULATIVE BUBBLES - A BEHAVIORAL APPROACH

Vasile Dedu (), Turcan Ciprian Sebastian () and Turcan Radu ()
Additional contact information
Turcan Ciprian Sebastian: Doctorand Academia de Studii Economice, FABBV Scoala doctorala
Turcan Radu: Universitatea din Oradea, Facultatea de Stiinte Socio-Umane

Annals of Faculty of Economics, 2012, vol. 1, issue 1, 798-802

Abstract: The purpose of this paper is to explain briefly from a behavioral point of view, the appearance and the development of speculative bubbles in financial markets. In the first part of the paper, we have presented the most known speculative bubbles among the history and the principal factors causing them (structural, cultural and behavioral factors). In the second part of the paper we have briefly presented the four main stages of developing speculative bubbles. In the last part of the paper we have concluded that besides the general opinion that bubbles make more harm to investors and economies, the human history has provided us the lesson that some of the bubbles have offered us genuine collective social gains: Apollo program, Human Genome Project and the Dot.com bubbles in the early 2000s. As some studies reflect, besides of the fact the some investors have lost all their money during those bubbles (Dot.com), nowadays we all enjoy the IT infrastructure realized with all those heaps of money that were frenetically invested in.

Keywords: Bubbles; Phases; Behavioral Biases; Smart Money; Euphoria; Collective Social Gain (search for similar items in EconPapers)
JEL-codes: D71 D81 D83 D84 G12 G14 Z10 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://anale.steconomiceuoradea.ro/volume/2012/n1/115.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2012:i:1:p:798-802

Access Statistics for this article

More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Catalin ZMOLE ( this e-mail address is bad, please contact ).