The DOI matches its Crossref record; 17 of the 17 references it cites were found in a registry or an index.
Herd Behaviour, Bubbles and Crashes
Abstract
This paper attempts to formalise herd behaviour or mutual mimetic contagion in speculative markets. The emergence of bubbles is explained as a self-organising process of infection among traders leading to equilibrium prices which deviate from fundamental values. It is postulated furthermore that the speculators' readiness to follow the crowd depends on one basic economic variable, namely actual returns. Above average returns are reflected in a generally more optimistic attitude that fosters the disposition to overtake others' bullish beliefs and vice versa. This economic influence makes bubbles transient phenomena and leads to repeated fluctuations around fundamental values.
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Citations
Cites
Noise Trader Risk in Financial Markets
De Long, J. B., Shleifer, A., Summers, L. H., & Waldmann, R. J. (1990) · Journal of Political Economy · doi:10.1086/261703 · Cited by 6,234
Scharfstein, D. S., & Stein, J. C. (1988) · American Economic Review · Cited by 2,783
Haken, H. (2009) · Encyclopedia of Complexity and Systems Science · doi:10.1007/978-0-387-30440-3_534 · Cited by 2,336
Mean Reversion in Stock Prices: Evidence and Implications
Poterba, J., & Summers, L. (1987) · National Bureau of Economic Research · doi:10.3386/w2343 · Cited by 1,875
Stock Prices and Social Dynamics
Shiller, R. J., Fischer, S., & Friedman, B. M. (1984) · Brookings Papers on Economic Activity · doi:10.2307/2534436 · Cited by 1,610
Mean Reversion in Stock Prices: Archival Version
Poterba, J., & Summers, L. (1996) · ICPSR Data Holdings · doi:10.3886/icpsr01029 · Cited by 1,083
Ants, Rationality, and Recruitment
Kirman, A. (1993) · The Quarterly Journal of Economics · doi:10.2307/2118498 · Cited by 983
Day, R. H., & Huang, W. (1990) · Journal of Economic Behavior & Organization · doi:10.1016/0167-2681(90)90061-h · Cited by 636
Market Liquidity, Hedging, and Crashes
Gennotte, G., & Leland, H. E. (1990) · American Economic Review · Cited by 530
The Survival of Noise Traders in Financial Markets
De Long, J. B., Shleifer, A., Summers, L., & Waldmann, R. (1988) · National Bureau of Economic Research · doi:10.3386/w2715 · Cited by 529
Cited by
Leech, B. L. (2010) · The Oxford Handbook of American Political Parties and Interest Groups · doi:10.1093/oxfordhb/9780199542628.003.0028 · Cited by 91
Metadata
- Authors
- Lux, T.
- Venue
- The Economic Journal
- Publisher
- Oxford University Press (OUP)
- Published
- 1995-07
- Volume
- 105
- Issue
- 431
- Pages
- 881
- ISSN
- 0013-0133 (ISSN-L)
- OpenAlex
- W2066176347
- Cited by
- 1,050
- References
- 17
- FWCI
- 19.52
- Type
- journal article
- Language
- en
- Open access
- closed
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- Lux, T. (1995). Herd Behaviour, Bubbles and Crashes. The Economic Journal. https://doi.org/10.2307/2235156
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
