Investigating Herding Behavior in an Experimental Setup

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چکیده

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Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis —not for publication—

Appendix A analyzes alternative, behavioral explanations for trading behavior. The time-line in Appendix B gives a complete run down of the structure of a typical experimental setting and the text (not the section headings) of the instructions detailed in Appendix C are a reproduction of what is read to the subjects during the experiment. Answers to questions are of course unscripted, but all o...

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Herding and Contrarian Behaviour in Financial Markets: An Experimental Analysis

We are the first paper to analyse and confirm the existence and extent of rational informational herding and rational informational contrarianism in a financial market experiment, and to compare and contrast these with the equivalent irrational phenomena. In our study, subjects generally behaved according to benchmark rationality. Moreover, traders who should herd or be contrarian in theory are...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2009

ISSN: 1556-5068

DOI: 10.2139/ssrn.2440667