05954oam 22011894 450 991081262510332120200520144314.01-4623-1443-01-4527-4000-31-282-84092-41-4518-6999-19786612840920(CKB)3170000000055044(EBL)1607898(SSID)ssj0000944137(PQKBManifestationID)11503325(PQKBTitleCode)TC0000944137(PQKBWorkID)10983369(PQKB)10193867(OCoLC)252901774(IMF)WPIEE2008141(MiAaPQ)EBC1607898(IMF)WPIEA2008141(EXLCZ)99317000000005504420020129d2008 uf 0engur|n|---|||||txtccrHerd Behavior in Financial Markets : An Experiment with Financial Market Professionals /Marco Cipriani, Antonio Guarino1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (30 p.)IMF Working PapersIMF working paper ;WP/08/141Description based upon print version of record.1-4519-1452-0 Includes bibliographical references.Contents; I. Introduction; A. Literature Review; II. The Theoreticalmodel; A. The model structure; B. Theoretical predictions; Figures; 1. Prices and Traders' Expectations after a History of Buys; III. The Experiment and the Experimental Design; A. The experiment; B. Experimental design: the two treatments; 2. Prices and Traders' Expectations after a History of Sells; 3. Prices and Traders' Expectations after a Sell Followed by a History of Buys; IV. Results: Rationality, Herding and Contrarian Behavior; A. Treatment I; Tables; 1. Average behavior in Treatment I2. Cascade trading behavior in Treatment IB. Treatment II; 3. No trade in Treatment I; 4. Average behavior in Treatment II; V. Comparison with Previous Experimental Results; 5. Cascade trading behavior in Treatment II; 6. No trade in Treatment II; VI. Individual Behavior; 7. Percentage of decisions in accordance with the theoretical prediction at individual level.; VII. Conclusions; 8. Regressions of the level of rationality in the experiment on individual characteristics. P-values in parenthesis9. Regression of subjects' payoff at the end of the experiment on individual characteristics. P-values in parenthesis10. Regressions of participants' proportion of herding, contrarianism and no trading on the trader's dummy. Herd 1 and Contrarian 1 refer to Treatment I. Herd 2 and Contrarian 2 refer to Treatment II. P-values in parenthesis; ReferencesWe study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous experimental evidence on student subjects. A proportion of subjects, however, engage in contrarianism, something not accounted for by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theory suggests; moreover, contrarianism disappears altogether.IMF Working Papers; Working Paper ;No. 2008/141Capitalists and financiersPsychologyEconometric modelsInvestmentsDecision makingEconometric modelsCollective behaviorEconometric modelsAsset valuationimfAsset-liability managementimfBalance of tradeimfCapital marketimfEconomics of GenderimfEducationimfEducation: GeneralimfEmpirical Studies of TradeimfExports and ImportsimfFinanceimfFinance: GeneralimfFinancial Risk ManagementimfGender StudiesimfGender studies, gender groupsimfGenderimfGeneral Financial Markets: General (includes Measurement and Data)imfInternational economicsimfInternational Financial MarketsimfNon-labor DiscriminationimfSecurities marketsimfSex roleimfTrade balanceimfCapitalists and financiersPsychologyEconometric models.InvestmentsDecision makingEconometric models.Collective behaviorEconometric models.Asset valuationAsset-liability managementBalance of tradeCapital marketEconomics of GenderEducationEducation: GeneralEmpirical Studies of TradeExports and ImportsFinanceFinance: GeneralFinancial Risk ManagementGender StudiesGender studies, gender groupsGenderGeneral Financial Markets: General (includes Measurement and Data)International economicsInternational Financial MarketsNon-labor DiscriminationSecurities marketsSex roleTrade balance330.12Cipriani Marco1722280Guarino Antonio305062DcWaIMFBOOK9910812625103321Herd Behavior in Financial Markets4122515UNINA