Add to ORKGWe study a model where a capital provider learns from the price of a firm’s security in deciding how much capital to provide for new investment. This feedback effect from the financial market to the investment decision gives rise to trading frenzies, where speculators all wish to trade like others, generating large pressure on prices. Coordination among speculators is sometimes desirable for price informativeness and investment efficiency, but speculators’ incentives push in the opposite direction, so that they coordinate exactly when it is undesirable. We analyse the effect of various market parameters on the likelihood of trading frenzies to arise.
We investigate the role of "weight of money " pricing in generating spec-ulative dynamics....
We analyze strategic speculators' incentives to trade on information in a model One of the core...
We propose a model in which investors cannot costlessly process information from asset prices. At th...
We study a model in which a capital provider learns from the price of a firm's security in deciding ...
financial market to the investment decision gives rise to trading frenzies, in which speculators all...
Analyses of the role of rational speculators in financial markets usually presume that such investor...
A fundamental role of financial markets is to gather information on firms ’ investment opportunities...
We use recent data of the CFTC to re-assess the effects of financial traders on informational effici...
We propose and estimate a structural model of daily stock market activity to test competing theories...
We analyze the incentives for ficial market traders to produce information about a firm’s investment...
We present a model where it can be optimal for rational informed speculators/arbitragers to ride the...
A fundamental role of financial markets is to gather information on firms’ investment opportunities,...
We run an experiment to investigate the emergence of excess and synchronised trading activity leadin...
We analyze a model where traders have different trading opportunities and learn information from pri...
We investigate the possibility that in the foreign exchange market uninformed speculators find it co...
We investigate the role of "weight of money " pricing in generating spec-ulative dynamics....
We analyze strategic speculators' incentives to trade on information in a model One of the core...
We propose a model in which investors cannot costlessly process information from asset prices. At th...
We study a model in which a capital provider learns from the price of a firm's security in deciding ...
financial market to the investment decision gives rise to trading frenzies, in which speculators all...
Analyses of the role of rational speculators in financial markets usually presume that such investor...
A fundamental role of financial markets is to gather information on firms ’ investment opportunities...
We use recent data of the CFTC to re-assess the effects of financial traders on informational effici...
We propose and estimate a structural model of daily stock market activity to test competing theories...
We analyze the incentives for ficial market traders to produce information about a firm’s investment...
We present a model where it can be optimal for rational informed speculators/arbitragers to ride the...
A fundamental role of financial markets is to gather information on firms’ investment opportunities,...
We run an experiment to investigate the emergence of excess and synchronised trading activity leadin...
We analyze a model where traders have different trading opportunities and learn information from pri...
We investigate the possibility that in the foreign exchange market uninformed speculators find it co...
We investigate the role of "weight of money " pricing in generating spec-ulative dynamics....
We analyze strategic speculators' incentives to trade on information in a model One of the core...
We propose a model in which investors cannot costlessly process information from asset prices. At th...