Parental Financial Socialisation: Pathways to Positive Financial Behaviour

Financial Depth – Financial Repression Linkage

A Financial Market Model Incorporating Herd Behaviour

Herd behaviour in financial markets is a recurring phenomenon that exacerbates asset price volatility, and is considered a possible contributor to market fragility. While numerous studies investigate herd behaviour in financial markets, it is often considered without reference to the pricing of financial instruments or other market dynamics. Here, a trader interaction model based upon informati...

Understanding Information Seeking Behaviour in Financial Advisory

In light of the financial crisis, it has become even more critical for financial service providers to remain competitive. This paper discusses new perspectives on the problems of today’s advisory services, including the customer's dissatisfaction with personalization and individualization. Thereby we draw on research in human information behavior, particularly Wilson's model, which provides a p...

Herding and Contrarian Behaviour in Financial Markets

Rational herd behaviour and informationally efficient security prices have long been considered to be mutually exclusive but for exceptional cases. In this paper we describe the conditions on the underlying information structure that are necessary and sufficient for informational herding and contrarianism. In a standard sequential security trading model, subject to sufficient noise trading, peo...

Pathways towards instability in financial networks

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily distress can spread within the system. However, in financial network models, the details of how financial institutions interact typically play a decisive rol...