Search results for "Herding"
showing 10 items of 26 documents
Extreme interdependence and extreme contagion between emerging markets
2007
Abstract This paper uses seemingly unrelated probit techniques to separate the transmission of a crisis due to broadly defined macroeconomic interdependence from contagion due to herding, avoiding some of the caveats of the more traditional cross-correlation approach. We find that pure contagion occurred in a limited number of country pairs generally belonging to the same region. A reduction in speculative pressure can also be identified between countries in different regional blocks. This seems to suggest that after an initial crisis episode, investors tend to discriminate on the basis of location and common macroeconomic weakness or perceived similarity.
Why Is Equity Order Flow so Persistent?
2014
Order flow in equity markets is remarkably persistent in the sense that order signs (to buy or sell) are positively autocorrelated out to time lags of tens of thousands of orders, corresponding to many days. Two possible explanations are herding, corresponding to positive correlation in the behavior of different investors, or order splitting, corresponding to positive autocorrelation in the behavior of single investors. We investigate this using order flow data from the London Stock Exchange for which we have membership identifiers. By formulating models for herding and order splitting, as well as models for brokerage choice, we are able to overcome the distortion introduced by brokerage. O…
‘Where the F… is Vuotso?’ : heritage of Second World War forced movement and destruction in a Sámi reindeer herding community in Finnish Lapland
2017
In this paper we discuss the heritage of the WWII evacuation and the so-called ‘burning of Lapland’ within a Sámi reindeer herding community, and assess how these wartime experiences have moulded, and continue to mould, the ways people memorialise and engage with the WWII material remains. Our focus is on the village of Vuotso, which is home to the southernmost Sámi community in Finland. The Nazi German troops established a large military base there in 1941, and the Germans and the villagers lived as close neighbours for several years. In 1944 the villagers were evacuated before the outbreak of the Finno-German ‘Lapland War’ of 1944–1945, in which the German troops annihilated their militar…
Behavioral aspects of the European carbon market
2016
TEMA: El tema de esta tesis doctoral está basado en el campo de las finanzas del comportamiento en donde se proponen teorías basados en la psicología para explicar las anomalías del mercado de valores. Dentro de las finanzas del comportamiento, se supone que la estructura de la información y las características de los participantes del mercado influyen sistemáticamente en las decisiones de inversión de los individuos, así como en los resultados del mercado. Así pues, durante todo el estudio se analizaran ciertos comportamientos psicológicos que podrían afectar al comportamiento del mercado del carbono europeo y que de demostrarse su presencia alteraría la racionalidad de dicho mercado finan…
Specialization and herding behavior of trading firms in a financial market
2008
Agent-based models of financial markets usually make assumptions about agent’s preferred stylized strategies. Empirical validations of these assumptions have not been performed so far on a full-market scale. Here we present a comprehensive study of the resulting strategies followed by the firms which are members of the Spanish Stock Exchange. We are able to show that they can be characterized by a resulting strategy and classified in three well- defined groups of firms. Firms of the first group have a change of inventory of the traded stock which is positively correlated with the synchronous stock return whereas firms of the second group show a negative correlation. Firms of the third group…
Rational Herding in Reward-Based Crowdfunding: An MTurk Experiment.
2020
Crowdfunding is gaining popularity as a way of financing social sustainable initiatives. We performed a controlled economic experiment in MTurk by simulating a crowdfunding platform and developed a theoretical model that rationalizes herding behavior. The experiment was designed to test and quantify the causal effects of revealing specific information to prospective backers: (i) the number of early contributors already financing the project and (ii) positive opinions of other backers versus those of experts. The results show that early contributions to the campaign and positive opinions of peers act as a reinforcing signal to potential backers and affect backers&rsquo
Shall we follow? Impact of reputation concern on information security managers’ investment decisions
2020
Information security (infosec) is important for organizations. While budgeting for infosec is a crucial resource allocation decision, infosec managers may choose to follow other fellow experts’ recommendations or baseline practices. The present paper uses reputational herding theory to explain the decision made by infosec managers to use a “let's follow others” strategy in this context. Based on a sample of 106 organizations in Finland, we find that infosec managers’ ability to accurately predict the benefit of infosec investment, as well as their reputations, have significant effects on motivating them to discount their own information. Infosec managers’ discounting of their own informatio…
Land-use and climate related drivers of change in the reindeer management system in Finland: geography of perceptions
2021
Drivers of change in the reindeer management system are rather well-known. But when developing the gover-nance to support the traditional livelihoods, it is crucial to understand also practitioner perceptions. Systematic research on these is lacking. We analyzed the land-use and climate related drivers within the reindeer man-agement area (RMA) in Finland, and, using a perception geography approach, studied the herder perceptions towards these. We conducted an on-site questionnaire survey with herders from 51 herding districts. Factors directly affecting the welfare of reindeer were perceived as crucial by herders, for example basal icing affecting the forage availability, and land-use rela…
To Calculate or To Follow Others : How Do Information Security Managers Make Investment Decisions?
2019
Economic models of information security investment suggest estimating cost and benefit to make an information security investment decision. However, the intangible nature of information security investment prevents managers from applying costbenefit analysis in practice. Instead, information security managers may follow experts’ recommendations or the practices of other organizations. The present paper examines factors that influence information security managers’ investment decisions from the reputational herding perspective. The study was conducted using survey questionnaire data collected from 106 organizations in Finland. The findings of the study reveal that the ability and reputation …
"Rational herding in crowdfunding, social preferences under uncertainty, and overplacement in known and unknown tasks: a behavioral approach"
2020
It has been proved in this dissertation how experimental economics continues to be a tool that, as it nourishes theoretical economics (and viceversa), it keeps producing results that are necessary to understand how to articulate social relations which, ultimately, have consequences oneconomic relations. Specifically, Chapter 1 has studied how the dissemination of new information affects crowdfunding markets and the generation of herding behaviour. Specifically, we provide evidence in that such behaviour is rational and could be well moulded through optimal choice under uncertainty with Bayesian review of beliefs. In this sense, the effect of the first sponsors on the agents# behaviour has b…