EconPapers    
Economics at your fingertips  
 

Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis

Andreas Park and Daniel Sgroi

CRETA Online Discussion Paper Series from Centre for Research in Economic Theory and its Applications CRETA

Abstract: We analyze and confirm the existence and extent of rational informational herding and rational informational contrarianism in a financial market experiment, and compare and contrast these with equivalent irrational phenomena. In our study, subjects generally behave according to benchmark rationality. Traders who should herd or be contrarian in theory are the signi cant sources of both within the data. Correcting for subjects who can be identified as less rational increases our ability to predict herding or contrarian behavior considerably.

Keywords: Herding; Contrarianism; Informational Efficiency; Experiments JEL classification numbers: C91; D82; G14 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-fmk and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/c ... inancial_markets.pdf

Related works:
Working Paper: Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis (2016) Downloads
Working Paper: Herding and Contrarian Behavior in Financial Markets - An Experimental Analysis (2016) Downloads
Working Paper: Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis (2009) Downloads
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:wrk:wcreta:17

Access Statistics for this paper

More papers in CRETA Online Discussion Paper Series from Centre for Research in Economic Theory and its Applications CRETA Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().

 
Page updated 2021-01-25
Handle: RePEc:wrk:wcreta:17