Transmission of Information and Herd Behavior: An Application to Financial Markets

We propose a model for stochastic formation of opinion clusters, modeled by an evolving network, and herd behavior to account for the observed fat-tail distribution in returns of financial-price data. The only parameter of the model is h, the rate of information dispersion per trade, which is a meas...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autor principal: Eguíluz, V.M
Otros Autores: Zimmermann, M.G
Formato: Capítulo de libro
Lenguaje:Inglés
Publicado: 2000
Acceso en línea:Registro en Scopus
DOI
Handle
Registro en la Biblioteca Digital
Aporte de:Registro referencial: Solicitar el recurso aquí
LEADER 04402caa a22006497a 4500
001 PAPER-2201
003 AR-BaUEN
005 20230518203135.0
008 190411s2000 xx ||||fo|||| 00| 0 eng|d
024 7 |2 scopus  |a 2-s2.0-0041906248 
040 |a Scopus  |b spa  |c AR-BaUEN  |d AR-BaUEN 
100 1 |a Eguíluz, V.M. 
245 1 0 |a Transmission of Information and Herd Behavior: An Application to Financial Markets 
260 |c 2000 
270 1 0 |m Eguíluz, V.M.; Instituto Mediterráneo de Estudios Avanzados IMEDEA, CSIC-UIB, Palma de Mallorca, E-07071, Spain 
506 |2 openaire  |e Política editorial 
504 |a Moss De Oliveira, S., De Oliveira, P.M.C., Stauffer, D., (1999) Evolution, Money, War and Computers, , Teubner, Stuttgart-Leipzig 
504 |a Mantegna, R.N., Stanley, E., (1999) An Introduction to Econophysics: Correlations and Complexity in Finance, , Cambridge University Press, Cambridge, England 
504 |a Bouchaud, J.P., Potters, M., (2000) Theory of Financial Risk, , Cambridge University Press, Cambridge, England 
504 |a Lux, T., Marchesi, M., (1999) Nature (London), 397, p. 498 
504 |a Mantegna, R.N., Stanley, E., (1995) Nature (London), 376, p. 46 
504 |a Lux, T., (1996) Appl. Financial Economics, 6, p. 463 
504 |a Gopikrishnan, P., Plerou, V., Nunes Amaral, L.A., Meyer, M., Stanley, H.E., (1999) Phys. Rev. E, 60, p. 5305 
504 |a Plerou, V., Gopikrishnan, P., Nunes Amaral, L.A., Meyer, M., Stanley, H.E., (1999) Phys. Rev. E, 60, p. 6519. , references therein 
504 |a Bak, P., Paczuski, M., Shubik, M., (1997) Physica (Amsterdam), 246A, p. 430 
504 |a Topol, R., (1991) Econ. J, 101, p. 768 
504 |a Bannerjee, A., (1993) Rev. Econ. Studies, 60, p. 309 
504 |a Cont, R., Bouchaud, J.P., (2000) Macroeconomic Dyn, 4, p. 170 
504 |a Farmer, J.D., e-print; Zhang, Y.-C., (1998) Physica (Amsterdam), 269A, p. 30 
504 |a Corral, A., Pérez, C.J., Díaz-Guilera, A., (1997) Phys. Rev. Lett, 78, p. 1492 
504 |a D'hulst, R., Rodgers, G.J., e-print, e-print; Stauffer, D., Sornette, D., (1999) Physica (Amsterdam), 271A, p. 496 
520 3 |a We propose a model for stochastic formation of opinion clusters, modeled by an evolving network, and herd behavior to account for the observed fat-tail distribution in returns of financial-price data. The only parameter of the model is h, the rate of information dispersion per trade, which is a measure of herding behavior. For h below a critical h* the system displays a power-law distribution of the returns with exponential cutoff. However, for h>h* an increase in the probability of large returns is found and may be associated with the occurrence of large crashes. © 2000 The American Physical Society.  |l eng 
593 |a Instituto Mediterráneo de Estudios Avanzados IMEDEA, CSIC-UIB, Palma de Mallorca, E-07071, Spain 
593 |a Center for Chaos and Turbulence Studies, The Niels Bohr Institute, Blegdamsvej 17, Copenhagen, DK-2100, Denmark 
593 |a Departamento de Física, Facultad Ciencias Exactas y Naturales, Universidad de Buenos Aires, Buenos Aires, Argentina 
690 1 0 |a ARTICLE 
690 1 0 |a COMMERCE 
690 1 0 |a COMPUTER SIMULATION 
690 1 0 |a FINANCE 
690 1 0 |a INFORMATION ANALYSIS 
690 1 0 |a MATHEMATICAL MODELS 
690 1 0 |a PROBABILITY 
690 1 0 |a FINANCIAL MARKETS 
690 1 0 |a HERD BEHAVIOR 
690 1 0 |a INFORMATION BEHAVIOR 
690 1 0 |a INFORMATION DISPERSION PER TRADE 
690 1 0 |a MARKETING 
700 1 |a Zimmermann, M.G. 
773 0 |d 2000  |g v. 85  |h pp. 5659-5662  |k n. 26  |p Phys Rev Lett  |x 00319007  |w (AR-BaUEN)CENRE-386  |t Physical Review Letters 
856 4 1 |u https://www.scopus.com/inward/record.uri?eid=2-s2.0-0041906248&doi=10.1103%2fPhysRevLett.85.5659&partnerID=40&md5=b5686ba1d27eb7d85301f8ea3a9601c6  |y Registro en Scopus 
856 4 0 |u https://doi.org/10.1103/PhysRevLett.85.5659  |y DOI 
856 4 0 |u https://hdl.handle.net/20.500.12110/paper_00319007_v85_n26_p5659_Eguiluz  |y Handle 
856 4 0 |u https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_00319007_v85_n26_p5659_Eguiluz  |y Registro en la Biblioteca Digital 
961 |a paper_00319007_v85_n26_p5659_Eguiluz  |b paper  |c PE 
962 |a info:eu-repo/semantics/article  |a info:ar-repo/semantics/artículo  |b info:eu-repo/semantics/publishedVersion 
963 |a VARI 
999 |c 63154